ACCT CH 10

ABC airlines collected $300 for a round trip ticket from Chicago to LA in advance. The entry to record after the flight occurs includes a debit to ______ for $300 and...

debit deferred revenue credit service revenue

the entry to record the employer's obligation for FICA and state unemployment taxes includes a...

debit to payroll tax payable credit FICA payable credit unemployment tax payable

what does IRS call a corporate income tax return

form 1120

under us GAAP, continent liabilities are recorded if the estimated loss is probable. under IFRS, CL's are recorded if the estimated loss is "more likely than not". Which framework will report more CL's on the balance sheet

iFRS

which are not required payroll deductions from an employees' gross earnings?

income tax, fica tax, and charitable donations

the AJE to record interest accrued on a note payable is debit....

interest expense, credit interest payable

the journal entry to record employer payroll taxes affects

liabilities and stockholders equity

current portion of long-term debt reports the amount of ______ and is reported on the ______

long term debt that is reclassified because it is due within the year; balance sheet

net pay is calculated by

subtracting pay roll deductions from gross pay

long term liabilities are accounted for in the same way as short term liabilities, except the long term liabilities are on the books for more than one ________

year

the law requires _________to pay FICA taxes

both employee and employer

bonds that can be exchanged for stock are called

convertible bonds

what are the key events for the issuer of the notes payable

- recording principal paid - accruing interest incurred but not paid - establishing the note - recording interest paid

if an AJE is required for interest owed, then the ________ will report ________

balance sheet: notes payable income statement: interest expense balance sheet: interest payable