Lee Financial Services pays employees monthly Payroll infor.pdf

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Lee Financial Services paid its employees $430,000 for the month of January 2024. The document provides payroll information and requires calculating income and payroll taxes for January 2024, and preparing journal entries to record salaries expense and payroll tax expense for the pay period, as salaries have not yet been paid.

Lee Financial Services pays employees monthly. Payroll information is listed below for January
2024, the first month of Lee's fiscal year. Assume that none of the employees exceeded any
relevant base of pay, such that all benefit percentages apply to the entire $430,000 payroll.
Required: Calculate the income and payroll taxes for the January 2024 pay period. Prepare the
appropriate journal entries to record salaries expense and payroll tax expense for the January
2024 pay period. Salaries are not yet paid. Answer is not complete. Complete this question by
entering your answers in the tabs below. Calculate the income and payroll taxes for the January
2024 pay period.Lee Financial Services pays employees monthly. Payroll information is listed
below for January 2024 , the first month of Lee's fiscal year. Assume that none of the employees
exceeded any relevant base of pay, such that all benefit percentages apply to the entire $430,000
payroll. Required: Calculate the income and payroll taxes for the January 2024 pay period.
Prepare the appropriate journal entries to record salaries expense and payroll tax expense for the
January 2024 pay period. Salaries are not yet paid. Complete this question by entering your
answers in the tabs below. Prepare the appropriate journal entries to record salaries expense and
payroll tax expense for the January 2024 pay period. Salaries are not yet paid. Note: If no entry is
required for a transaction/event, select "No journal entry required" in the first account field. Journal
entry worksheet 2 Record salaries expense for January 2024 pay period. Note: Enter debits before
credits.Lee Financial Services pays employees monthly. Payroll Information is IIsted below for
January 2024 , the first month of Lee's fiscal year. Assume that none of the employees exceeded
any relevant base of pay, such that all benefit percentages apply to the entire $430,000 payroll.
Required: Calculate the income and payroll taxes for the January 2024 pay period. Prepare the
appropriate journal entries to record salaries expense and payroll tax expense for the January
2024 pay period. Salaries are not yet paid. Complete this question by entering your answers in the
tabs below. Prepare the appropriate journal entries to record salaries expense and payroll tax
expense for the January 2024 pay periad. Salaries are not yet paid. Note: If no entry is required for
a transaction/event, select "No journal entry required" in the first account field. Journal entry
worksheet Record payroll tax expense for January 2024 pay period. Note: Enter debits before
credits.

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4-‹#› Accrual Accounting Concepts Kimmel ● Weygandt ● Kieso Financial Accounting, Eighth Edition 4 4-‹#› Prepare adjusting entries for deferrals. CHAPTER OUTLINE Explain the accrual basis of accounting and the reasons for adjusting entries. 1 2 LEARNING OBJECTIVES Prepare adjusting entries for accruals. 3 Prepare an adjusted trial balance and closing entries. 4 4-‹#› LEARNING OBJECTIVE Explain the accrual basis of accounting and the reasons for adjusting entries. 1 LO 1 Generally a month, a quarter, or a year. Fiscal year vs. calendar year. Accountants divide the economic life of a business into artificial time periods (Periodicity Assumption). Jan. Feb. Mar. Apr. Dec. . . . . . ▼ HELPFUL HINT An accounting time period that is one year long is called a fiscal year. 4-‹#› Periodicity Assumption Review Question What is the periodicity assumption? Companies should recognize revenue in the accounting period in which it is earned. Companies should match expenses with revenues. The economic life of a business can be divided into artificial time periods. The fiscal year should correspond with the calendar year. LO 1 4-‹#› Companies recognize revenue in the accounting period in which the performance obligation is satisfied. REVENUE RECOGNITION PRINCIPLE LO 1 4-‹#› TEACHING TIP Service businesses recognize revenue when the services are performed, although many customers may have been billed for the services (on account). The cash has not been received; however, the services have been performed. Therefore, revenue should be recognized. Illustration: Assume Conrad Dry Cleaners cleans clothing on June 30, but customers do not claim and pay for their clothes until the first week of July. The journal entries for June and July would be: REVENUE RECOGNITION PRINCIPLE LO 1 4-‹#› “Let the expenses follow the revenues.” ILLUSTRATION 4-1 EXPENSE RECOGNITION PRINCIPLE LO 1 4-‹#› ILLUSTRATION 4-1 GAAP relationships in revenue and expense recognition EXPENSE RECOGNITION PRINCIPLE LO 1 4-‹#› INVESTOR INSIGHT Reporting Revenue Accurately The Until recently, electronics manufacturer Apple was required to spread the revenues from iPhone sales over the two-year period following the sale of the phone. Accounting standards required this because Apple was obligated to provide software updates after the phone was sold. Since Apple had service obligations after the initial date of sale, it was forced to spread the revenue over a two-year period. As a result, the rapid growth of iPhone sales was not fully reflected in the revenue amounts reported in Apple’s income statement. A new accounting standard now enables Apple to report much more of its iPhone revenue at the point of sale. It was estimated that under the new rule revenues would have been about 17% higher and earnings per share almost 50% higher. Apple Inc. LO 1 4-‹#› Accrual-Basis Accounting Transactions recorded in the periods in which the events .

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1. Lee Financial Services pays employees monthly. Payroll information is listed below for January 2024, the first month of Lee's fiscal year. Assume that none of the employees exceeded any relevant base of pay, such that all benefit percentages apply to the entire $430,000 payroll. Required: Calculate the income and payroll taxes for the January 2024 pay period. Prepare the appropriate journal entries to record salaries expense and payroll tax expense for the January 2024 pay period. Salaries are not yet paid. Answer is not complete. Complete this question by entering your answers in the tabs below. Calculate the income and payroll taxes for the January 2024 pay period.Lee Financial Services pays employees monthly. Payroll information is listed below for January 2024 , the first month of Lee's fiscal year. Assume that none of the employees exceeded any relevant base of pay, such that all benefit percentages apply to the entire $430,000 payroll. Required: Calculate the income and payroll taxes for the January 2024 pay period. Prepare the appropriate journal entries to record salaries expense and payroll tax expense for the January 2024 pay period. Salaries are not yet paid. Complete this question by entering your answers in the tabs below. Prepare the appropriate journal entries to record salaries expense and payroll tax expense for the January 2024 pay period. Salaries are not yet paid. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet 2 Record salaries expense for January 2024 pay period. Note: Enter debits before credits.Lee Financial Services pays employees monthly. Payroll Information is IIsted below for January 2024 , the first month of Lee's fiscal year. Assume that none of the employees exceeded any relevant base of pay, such that all benefit percentages apply to the entire $430,000 payroll. Required: Calculate the income and payroll taxes for the January 2024 pay period. Prepare the appropriate journal entries to record salaries expense and payroll tax expense for the January 2024 pay period. Salaries are not yet paid. Complete this question by entering your answers in the tabs below. Prepare the appropriate journal entries to record salaries expense and payroll tax expense for the January 2024 pay periad. Salaries are not yet paid. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record payroll tax expense for January 2024 pay period. Note: Enter debits before credits.