Hello, in this lecture, we’re going to record the adjusting entry related to payroll, we’re going to record the journal entry up here on the left hand side and post that post that to the trial balance over on the right hand side trial balance in terms of assets and liabilities, then equity and the income statement, including revenue and expenses, all blue accounts, including the income statement being part of equity, we’re first going to go through and see if we can find the accounts that will be related to a payroll adjusting entry. And then we’ll go explain why we are going through this process. So just if we have the trial balance, and we know it’s an adjusting entry related to payroll, we know that there’s going to be at least two accounts affected. And we know that because it’s an adjusting entry, it will be as of the end of the time period. In this case, let’s say it’s the end of the year 1231.
This presentation and we’re going to enter payroll for the second month of operations. Recall that we’re not going to be entering payroll using the QuickBooks system. We will do that in a future presentation, we’ll get into more detail in payroll in and of itself, we don’t want to add the added feature of payroll, which costs more into our practice problem here, we will be imagining we have a third party processing the payroll like a ADP or a paychecks, we’re going to be getting the register from them, then we need to enter that information somehow into our system. So our financial statements then reflect the payroll information.
In this presentation, we’re going to purchase equipment with debt. In other words, we’re going to purchase equipment and finance the entire thing. Let’s get into it with Intuit QuickBooks Online. Here we are in our get great guitars file. Let’s first start off by opening up our reports this time. So I’m going to go down to the reports down below, we’re going to be opening up our favorite report that being the balance sheet report. So let’s open up the balance sheet. Going to change the dates up top those from a 10120 to 1230 120 January through December 2020.
Presentation and we’re going to enter payroll into our practice problem. Note that we’re not going to be processing payroll through the quickbooks online system, because that’s going to be an add on feature. We will talk more about payroll after the the practice problem has ended and its own section so you can get some more information there.
Overtime calculation in a few different formats. Overtime is generally thought of as time and a half. In other words overtime rates are time and a half of the original rate. Although we often use the term time and a half many don’t understand what it means fully. Overtime is usually calculated similar to a 50% raise. We can calculate the overtime rate as the original rate times 50% plus the regular rate. We can also calculate overtime as the origianl rate times 1.5 or 150%, the 1 representing the original time and the .5 representing the added 50% increase. Fore more accounting information see website: http://accountinginstruction.info/cou…
We will discuss payroll pay periods that companies could use to process payroll. Companies could process payroll monthly, weekly, biweekly, and semimonthly. It is useful to know the number of pay period in a year so we can calculate payroll and make comparisons between hourly wages and salary wages.
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