• sales tax is always a liability 
• pay roll and payroll taxes payable 
• the term payroll pertains to both 
• salaries - managerial, administrative, and sales personnel ( monthly or yearly rate) 
• wages - store clerks, factory employees 
• gross pay - payroll deduction - net pay 
• payroll deductions broken p into 
• insurance pensions an or union dues 
• fica  taxes 
• federal income tax 
• state and city income tax 
• charity 
• illustration : based on cargo corp's 100,000 payroll, the company would record the employers expense and liability for these payroll taxes as follows 
• payrol expense - 13850 
• fica tax expense - 7650 
• state unemployment taxes payable - 800 
• federal unemployment taxes payable - 5400 
• current maturities of long term debt 
• portion of ong term debt that comes due in the current year 
• issuring procedures 
• state laws grant corporations the power to issue bonds 
• board 
• bond trading 
• bondholders can sell their bonds on national exchanges
• bond prices are quoted 
• statement presentation 
• sale of bonds above face value (premium) 
•