 in this presentation we're going to take the payroll data for the month of november from the payroll register and create a journal entry in the general journal post to the general ledger and create the trial balance so to do that we're gonna we have the frozen pains here so if your pains aren't frozen you'll want to freeze them so we can work more easily so that's going to be up here you want to be up in a four cell a form we're going to go to the view tab we're going to go to the windows and freeze pains so then we can scroll down and we're going to the november i've made it green here just so we can work with these numbers did not get confused on them hopefully or get less confused and so we're going to go to this tab now the gl tab the trial bounce tab now once here what we want to do is make sure that we have the correct area to enter the data in you can see that there's going to be some hidden cells the way i have mine set up so far i'm going to first unhide all the cells and then we'll hide the cells that we don't need to be looking at so i'm going to put my cursor on anywhere outside the highlighted cells and then highlight the entire column and then highlight all cells and then right click on the selected i should say selected area so highlighted selected area and we are going to unhide okay now there also may be frozen pains so something doesn't work quite right for you you may have frozen frozen the pains before which would be in the view tab windows and frozen pains we're going to want to unfreeze the pains so the pains must be unfrozen before we can freeze it to back up again so now we're going to try to do this a bit faster and this will be to show us that the you know the journal entries are going to be much the same for month to month so we're going to do this month and we're going to say hey you know what the format if we look at the last few months are pretty much the same right the numbers could change and we'll typically from from payroll to payroll of course we're using a very symmetrical payroll system you know same amount of hours so our first calculation is different than the second but the second and third are pretty much exactly the same so i'm going to at least copy the formatting and say well hey you know what i can copy pretty much all of this i'm going to copy from here down and say that journal entry will look pretty much the same and then right click and copy that and we're going to put that in cell t5 right click and paste uh we either way will work i'm going to go one two three all right and then we're just going to pick up the numbers which will probably be much the same as well but i want to make sure to pick up the numbers from the correct register from the correct pay period because typically those are things that will change then the accounts affected typically will not so note what you can typically do from a period to period is construct the journal entry in much the same fashion then pick up the new numbers from the new pay period register now that we have that set up i'm going to hide all these journal entries to the left so i'm going to put my cursor right on the r here with you have the drop down and then go all the way left left left left left left and then there's selected cells and right click and hide all right then we're going to do the same for the uh data on this side of the line so we're going to put our cursor on the x so it has a drop down i want to hide that i'm going to hide all the way till ac and i want to keep ad to have that nice little space there so we're going to right click on that and hide okay so now we have our data sheet and we even have our accounts so it's going to be much the same it's going to have one journal entry that's going to be recording the salaries expense then the payroll taxes for the employer portion and then we will actually pay off the liabilities that we have created on the 15th of the month so we're going to pick this up from the register so we're in v5 i'm just going to say equals go back to the register and we're picking up this cell in j uh 30 j 30 and enter now we're going to pick up all of the taxes i'm going to do that with a credit so instead of hitting equals we're going to say negative and we're going to go back to our register and pick up i'm going to go to the right a little bit so we want to pick up everything under the kind of like the red area so here's the oast i enter here's the h i we're going to say negative and go back to our register pick up the h i and that's medicare of course and enter then we're going to go negative for the f it federal income tax back to the register federal income tax f it enter and then the group insurance we're going to say negative go back to our register group insurance and enter then the union dues we're just going to say negative go back to our register union dues enter and then the retirement plan we're going to say negative go back to our register and 401k plan and then we have the check that we're going to have now this of course we could take from the register going back to the register here that 28 424 but i like to use the kind of plug formula here the debits minus the credits and then uh note that it should be equal to the net check in essence recalculating the net check so we're going to use our our plug formulas so how i call it the negative sum double click the sum function and highlight the uh debits and credits in this journal entry and enter so there's the 28 424 43 if we go back to the register there's the 28 424 43 net check looks good checks out let's post uh note that it's also in balance if you highlight the whole thing the debits minus the credits equal zero okay so we're first going to look for this 502 502 on the trial balances down here it's going to be in the income statements dark blue accounts same order on the general ledger so we're going to scroll to right we've got the assets we got the liabilities we've got revenue and expenses in the dark blue we're looking for salaries and wages expense right here in the m 21 i'm going to say the date is 12 1 now i didn't freeze the pains so now we're just going to say equals and if you can't freeze the pains if it's locked or something like that just you the best way to do it i think it's just a hold down the left arrow or one way you can do is hold down the left arrow till you hit the screen or just pull this all the way over till you get to the end and then we just need to go up to where we want and pick up that number that we want 502 to do that you kind of have to memorize that you're looking for account 502 okay so then we have that and it brings the balance up to 193 128 50 for the payroll expense if we scroll back to the income statement we can see that that has increased here and that will of course bring net income down net income starting at that 500 000 before all those transactions and note of course there would be other activity going on other than payroll during the year but we're just showing some income so you can see what will show on the income statement and what what um we'll show on the balance sheet so you can see that distinction as we go through the year here so this 500 000 is the only other activity other than payroll that we have right now just so we can demonstrate the net income decreasing over time due to solely concentrating on payroll okay so now we're going to go back up and we're going to freeze the pains for the rest of them so we're going to go up and we're going to make this less painful by freezing the pains we're in cell ad2 ad2 we want to then go to the tabs up top in the view tab then we're going to go to the windows group and we want to select the freeze pain then we're going to select the freeze pain and there we have it now the pain should be frozen and we're going to go to account 215 215 it's here on the trial balance it's going to be in the same order on the general ledger so we're going to scroll to the right we're looking for account 215 there it is 215 we're going to scroll down to as 15 date 12 1 we're in at 15 equals and we're going to point to w6 that 2002 61 61 and enter so that brings us up to 2002 61 61 now we're looking for 220 which should be pretty close right next to it so I'm just going to post them all out here before we go back to the trial balance and check it going a little bit faster here so we're going to say this happened on 12 1 as well and we are in cell a x 15 equals we're going to point to the 697 12 and enter now we're looking for FIT 225 also the liability also in the orange area here 225 looks like it's over to the right so it's I'm in BE 12 date 12 1 then we're in BF 12 we're going to say equals and point to the 8404 13 bringing the balance up to 8404 13 then we're looking for account 247 247 is going to be to the right it looks like and possibly down a bit yes there it is so we're down here in BI 24 we're going to say the date of 12 1 and we are now in BJ 24 equals and we're going to scroll back up and pick up that cell in W 11 enter bringing the balance up from 8003 2260 by 2007 74 20 to 11,096 80 then we're going to go to the checking account which is our count 100 that's going to be way on the other side so I'm going to put my cursor right on the left side of the frozen pains and scroll right and that'll pop us back over to where we want to be and we're looking for the checking account the first account we're here in AK 12 date 12 1 AL 12 we're going to say that equals and point to the checking account in W 12 that bringing the balance up from or bringing the balance down from 467 14205 by 28,424 2438 717 62 okay let's see if we're in balance I'm going to put my cursor right to the left side of the frozen pains and scroll right scroll down and see if we are in balance we are not missed I have missed something all right let's see 5516 is what we're out of balance by okay so we're obviously missing these two accounts that was done intentionally in order to see how the double entry accounting system works I'm going to highlight those I'm going to make those a different color now just to show what they are and the reason the way I found that out pretty quickly is one I should have recognized that number 5516 and then I went through here and I traced where these accounts are going I could see these are going somewhere by using these icons up top you can get those on the data tab or the formula tab and here they are so I put them in the quick toolbar but if I trace to I could say oh that's going somewhere that's going someone that's going somewhere this isn't this isn't and those are the problems and then you can kind of remove those arrows and now we can finish the process so we're looking for 243 account 243 scrolling to the right we have 243 group insurance scrolling down we're going to say on 12 one uh cell bf 24 equals scrolling up just a bit and picking up that 5501 then we got the last one on 245 so we're going to scroll up just a bit here's 245 union dues bi nine we're going to say 12 one and then in bj nine equals and we're going to point to that 16 and enter that brings balance up from 48 by 16 to 64 if we put our cursor right to the left side of the frozen pains and go right just a bit we'll see that those two accounts should then have been input as well we should be back in balance as we are there so accounting system is working again that's good the debits minus the credits on the income statement net income went down by the wages the other portion went to the liabilities accounts here are the liability accounts that have been affected which we will then need to pay fairly soon however before we do we're going to record the payroll liabilities for the employer portion as well as the payroll taxes for the employer portion i'm going to make these uh ungreen again so i'm going to do that with the paintbrush so i'm going to highlight the whole row above it because i want it to look like that row i'm going to go to the home tab i'm going to go to the clipboard group and the paintbrush within the clipboard group and then highlight the cells that we want to reformat all right now we're on 12 one we're on the payroll expense the liability portion so if we go back to our register we have mimicked this part of it to the paycheck now we're going to this part of it the employer taxes including uh o asti social security hi medicare futa federal unemployment and suta state unemployment now these two of course are uh we've seen before because there's one half taken out of the paycheck one half paid by the employer these two we have not seen in the prior journal entry because they are employer only taxes so we're going to scroll back to the or we're just going to click back to or to the tab of the gl and we're just going to pick up i'm going to pick up the liabilities first and then the expense will be the sum of those liabilities so we're in w 15 we're going to say instead of equals because it is a credit a negative and then go back to the payroll register and we want to pick up the o asti in u 30 u 30 and then we're in uh w 15 w 16 negative and then go back to the register and we're going to pick up the 697 12 and then there's nothing in suta or futa futa or suta because those are typically things that will run out and no more taxes be due after the first few pay periods because of that low cap okay so now we're going to do the negative sum plug formula to get the debit which will be the payroll tax expense so to do that we'll say negative instead of equals sum i'm going to do it all with the keyboard this time so i'm going to click shift f 9 down arrow one time shift right down down down and we could close it up with shift zero so if you use the keys the keyboard the more you use the keyboard the more geeky you are which is of course a positive thing so now we're going to go to um 5 20 is our account 5 20 will be down here in uh way down towards the bottom of the trap balance same order for the general ledger so we're going to go to the right we have the assets we have the liabilities and we have the capital we have the revenue and the expenses we're looking for the taxes payroll taxes it's over here in bq the date will be 12 1 we are in br 9 and we're going to say equals scroll down just a bit make sure you're in the right journal entry here we could have made a green again but we'll do that maybe on the next one we're picking up this number on v 14 bringing the balance up from uh 12 7677 58 up by 2009 5 8 73 2 15 6 36 31 i'm going to scroll all the way well let's go put our cursor right to the left side of the frozen paints and go right and notes that that portion is a uh income statement account which is bringing down net income note that the payroll taxes that we have here are only including the employer payroll taxes the employee payroll taxes are included in the salaries and wages expenses here because they're not our payroll taxes they're not something that we the employer are paying we just took it out of the employee's paycheck okay so then we're going to go to the 215 which is here on the trial balance same order on the general ledger scroll on to the right looking for 215 there's the assets here's the liabilities 215 here it is FICA we're going to scroll down to as 16 date 12 1 we are now in at 16 where we will say equals make sure you're picking up the right one we're looking for this one although it will be the same because this is the employer portion this is the employee portion of the fi or the FICA for social security now we're looking for the FICA for medicare which is hi or accounts 220 220 we are in cell aw 16 the date being 12 1 we are in a x 16 we're going to say equals and 0.2 w 16 that'll bring the balance up and it looks much the same as the prior transaction in the gl for FICA hi so a medicare because this too as part of the FICA has a matching type of principle and so we have the employer and the employee portion in other words so if we scroll back to the right we should be back in balance here let's scroll down and see if we see the green zero at the bottom which would indicate that debits do indeed equal the credits which is nice okay so now we're on the last journal tree what we've done now we've entered the employer portion the employee paycheck portion and the employer portion for the payroll now we're going to assume that we need to make the payment for all these liabilities that have been incurred on behalf of the employees taking the withholdings out and for the employer portion and now pay them to whoever we need to pay them to mainly the federal government okay so let's do that journal tree and this is going to happen on the 15th so note we are obviously jumping forward in time a bit for that to happen okay so to do that we're just going to make these zero these are going to go down just like a payable account we're just going to pay it off and pay it off with cash so we're going to debit these accounts because these are credits and we need to do the opposite thing to make them go down so this one's got 4531 21 in it so we're just going to say debit 4523 21 and this one's got I'm going to debit that 1394.25 and then the federal income there's nothing in the futa or suta which is nice that'll make it a little bit faster because once again they would be there if it was the beginning of the pay period and note if you're just jumping into a payroll cycle if you're in the beginning of the pay period you'll be dealing with futa and suta and you'll start to be kind of shocked at the end that goes away kind of and if you've only dealt with the end payroll periods within a year you won't see futa and suta so those things are things can kind of throw off the payroll process when you're looking at just one pay period depending if it's the beginning or ending of the year anyways f it federal income tax we're going to say is 8404.13 and then the checking account is what's going to be paid for those items if we highlight the three of them it comes out to 14 321 59 coming out of our checking account we're going to do that with the plug formula the negative sum formula starting with instead of equals negative scum we're going to do this all with the keyboard this time so i'm going to type shift f9 up arrow one time hold down shift left up up and then we could close it up with a shift zero which we don't really need to if you didn't do that it'll still kind of do it for you you can note that it'll end up won't even won't even give you an error sign okay so there we have that and now we're going to post this out so there's 215 so here's 215 on the trial bounce third liability count we might want to make by the way that's kind of stopping in the middle there but we might want to make this one green since we have a lot of journal entries here now and we want to make sure we're picking up the right one so i'm going to do that i'm going to highlight this right click on it make it green that's what we want to post that's that way we can do it a little bit more in a kind of brain dead fashion and still get the job done correctly so we're going to go to the left we're looking for accounts 215 215 215 where's 215 looks like it's here in as and at we're going to be down on line 17 the date's going to be 1215 we are in at 17 at this time and i'm going to say equals and point to that 4523 21 in v 20 that brings balance down to zero then we're looking for accounts 220 220 if we scroll back up we see 220 and aw and ax columns respectively if we scroll back down we are in aw 17 date will be 1215 we're in ax 17 where we will say equals scroll down to the green numbers we're looking for we want to pick up that 1394 25 in cell v 21 bringing the balance down from 1394 25 by 1394 25 to zero now we want the account 225 so we're going to skip a couple columns here a couple columns skipped and we're going to scroll back up and we're looking for columns be and bf for account 125 we're in row 13 date 1215 we're in cell bf 13 we're going to say that that equals scrolling back down picking up our number that for that or 8404 13 bringing the balance down to zero now we just need to post the cash accounts i'm going to go right that's going to be the first account clearly it's our favorite account don't like it that it's going down like this but anyway we're going to go right to the left side of the frozen pains and then go right and we're going to pick up the cash account which is up here in ak and al we are in ak 13 we're going to say the date is 1215 and then in al 13 we'll say this equals and find that last account pick up 14 3 21 59 bringing the balance down from 4 38 7 17 62 by 14 3 22 about 2 4 24 396 0 3 if we go back to our trial balance and see if we are in balance we are that's good note that this journal entry does not affect the income statement at all no income or expense accounts in other words what it does do is it brings down the payable accounts down to zero and it affects cash bringing cash down in a similar fashion as our most popular most common and favorite payable the famous or infamous accounts payable which goes up when we buy something on account and it goes down when we pay it off a note when we when the payable goes down no effect on income because income statement the net income net income went up when the payable was incurred not when it was paid okay last thing let's just to make these green accounts blue again we want to make those green out green accounts blue so we're going to highlight the cells above it we're going to use the paint brush in order to do this we're going to go to the home tab clipboard group paint brush select that paint brush then we're going to highlight the green cells that we want blue and that should make them blue i note that i indented them because i picked up a cell apparently that had an indent in it so i'm just going to highlight these and go to the home tab alignment and decrease that indentation i'll do that here too just okay so it looks good