Understanding the Accounting Cycle for a Service Business
- 51: Describe record-organization and retention-schedule procedures for a service business.
- 52: Identify special transactions that require tax review.
- 82: Describe methods used to determine gross earnings (e.g., piece-rate, hourly, salary, commission, overtime, bonuses).
- 83: Explain the purposes of withholding and other deductions.
- 84: Compute employee gross earnings, deductions, and net pay on a payroll register.
- 86: Maintain employee earnings records
- 87: Generate payroll checks.
- 88: Identify source documents required for adding and deleting employees from payroll.
- 90: Prepare employer tax returns.
After studying Chapter 12, in addition to defining key terms, you will be able to:
- LO1 Explain how employees are paid.
- LO2 Calculate hourly employee earnings.
- LO3 Demonstrate the process for determining federal income tax withholdings.
- LO4 Demonstrate the process for calculating social security and Medicare taxes.
- LO5 Explain the benefit of funding medical and retirement plans with pretax contributions.
- LO6 Prepare a payroll register.
- LO7 Prepare employee earnings records.
- LO8 Justify the use of a payroll checking account.
- LO9 Prepare employee payroll checks.
Chapter 12 Vocabulary
Chapter 12 Accounting Text
Chapter 12 Study Guide
- 12-1 wkprs
- 12-2 wrkprs
- 12-3 wrkprs
- 12-4 wrkprs