Peer Review

This problem-based learning activity helps students practice analyzing economic events associated with the following current liabilities: short-term borrowing (notes payable), sales tax liabilities, and payroll. The note payable problem has students accrue interest expense at year end and repay the note early during the subsequent year. Sometimes companies include the sales tax in the selling price of merchandise instead of ringing it up separately. The sales tax problem illustrates this scenario. The payroll problem illustrates how a company accounts for employees' gross wages, withholdings from employee's paychecks, net pay (the resulting cash employees receive), as well as the employer's payroll tax liabilities.

Assignment

Educational resource to be incorporated into the Accounting Curriculum in the form of in-class presentation, open discussion and/or homework assignment.

No technical requirements. Browser was Chrome.

To provide accounting educators/students with an interesting way to analyze complex journal entries related to current liabilities that can be incorporated into the accounting curriculum to stimulate discussion and develop cognitive skills. Understand how to calculate and record interest expense; how to calculate taxes when it is imbedded in the customer price; how to calculate payroll deductions

College Lower Division, College Upper Division

Introductory concepts related to notes payable, taxes, and payroll deductions