Know Liabilities Accounts payable, Sales taxes payable, unearned revenues, short-term notes payable. If the face value equals the amount borrowed, the note is reported at face and interest is recorded as incurred. If the face value equals amount borrowed plus interest, the note is reported at face value less the discount.
Discount becomes interest expense as incurred.
Income Tax payable-determined from chart based on gross pay, pay period, marital status and number of exemptions. Employer taxes-result in expenses and current liabilities. Employer must contribute FICA taxes to match the employee contribution. Income Tax Liabilities- only for corporations. Employee health and pension benefits-must be accrued along with other payroll costs.