ACC 205 Week 4 Complete Work

ACC 205 Week 4 Complete Work

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WEEK 4
ACC 205_Week Four Solution

1. Payroll accounting:

a. The entry to record Brookhaven’s February payroll:

b. The journal entry to record Brookhaven’s payroll tax expense:

2. Current liabilities:

a. Journal entries to record the transactions:

b. Prepare adjusting entries on October 31 to record accrued interest:

c. The Current Liability section of Red Bank’s balance sheet as of October 31:

3. Notes payable:

a. Journal entries to record the transactions:

b. Prepare adjusting entries on October 31 to record accrued interest:

c. The Current Liability section of Red Bank’s balance sheet as of October 31:

ACC 205_Week_Four_Exercise_Assignment

Liability

Payroll accounting.
2. 2. Current liabilities: entries and disclosure.
3. 3. Notes payable.



Acc 205 Week 4_DQs and Journal

DQ: 01

What is a current liability? From the perspective of a user of financial statements, why do you believe current liabilities are separated from long-term liabilities? Based on your current experience as well as any additional research you may have done provide two examples of situations where businesses collect monies from customers and employees and reports these amounts as a current liability.

DQ: 02

A client comes to you thinking about starting a consulting business. Your client is specifically interested in what type of entity should be created for this new business. Based on your readings or any additional research you may have done, discuss the advantages and disadvantages of the following: sole proprietorship, partnership, and corporation. Based on these advantages and disadvantages provide a clear recommendation to your client.

Journal

The current liability section of the balance sheet lists the liabilities that are due within the next 12 months. Reflecting on your current financial situation, apply the concept of current liabilities. What does this analysis tell you about your future obligations? What did you learn from this experience?