 In this presentation, we will use information from our payroll register for the month of October to enter the journal entry for October into the general journal posted to the general ledger and record the trial balance with it. To make sure that we pick up the right information, we're going to highlight this information green again. So we're going to go down here. We're going to highlight from B19 all the way over. I should say select it to the X22 and then right click and then I'm going to make it green. I'm going to select this little pane and let's make it a lighter green again. Let's go to the screen here. It's getting lighter each time for some reason. Okay, then we're going to go back up top and let's freeze the panes. So I'm going to put my cursor right on A4 if it's not frozen already. I don't know why I keep unfreezing the pane but we're going to go up top. We're going to go to the view tab. We're going to go to the windows, freeze panes and freeze the pane. Okay, then we're going to scroll back down and this is the data we will be working with. We're going to enter that data into our journal entry tab. So we're going to go to the second tab over here. We're going to have to do some back and forth work between the two tabs. We're going to clean this tab up a little bit. We're going to either unhide or hide what we need. So if anything is hidden in your tab, what you want to do is select whatever cell you can up top and just select the whole thing. Just unhide everything all the way over as far as you need to go. Right click and then unhide anything that's hidden. Then what we're going to do is just hide the cells that we need. So these two are for the first payroll periods. We don't need those now. I don't need those to bother us right now. So we're going to put our cursor on the A and select all the way to the L, A to L. Let go and right click and hide. Then we don't need any of this data. We only need this data to enter this pay period. So I'm going to put my cursor on the R drop down and select all the way to A, C and then left click and hide. Okay, so this is going to be our information. We're going to enter the data here and we're going to post that to the general ledger on this side, which will generate the trial balance. Okay, there's going to be three journal entries, which will be one for the employee's payroll, two for the employer payroll taxes, and then we'll make the payment, which will be the last one, and that'll be on the 15th. So we're going to process the payroll, process it as of November 1st for the payroll period ending in October, and then we'll make the payment in November 15th for the withholdings and the payroll taxes. All right, so note that these are these should look very similar now and we could copy and paste the journal entries from the prior time period and just change the numbers. But we really want it. So just note the repetition there. So could you look at the prior pay period for help? Yes, of course we could. This is accounting. It's very similar from pay period to pay period, but we want to regenerate these because these are things we want to think through. So first, we're going to deal with the payroll journal entry. Now cash is affected, but this is one time I'm going to do that last because we're really working down to the net check. Remember, that's are going to be our goal. We're going to start with the payroll expense, which will be a debit here to 502 salaries and wages. So we're going to copy that, right click and copy. We're going to go a bit faster here. Since we've done this a couple times, it'll be much the same as the prior transactions. So in N5, we're going to right click and paste 123. And then the amount is going to be from the register. So we'll go back to the register and we're looking for the total pay. So here's the regular pay. Here's the total earnings. So we want to pull over the total earnings. So we'll go, I'm going to do that with a formula. So we'll go back to the GL and I'm going to put in cell P5 equals and then go over to the register and we're going to pick up that 487750 and enter. Then we're going to pull over all of the liability accounts that we withheld. So I'm going to go back to the register just to see what we're doing. We're mirroring this calculation. So we've got total earnings minus all these deductions. So we're mirroring these deductions. So we want OASDI, HIFIT, Group Insurance Union and 401k. Those will all be represented by liabilities on our accounts. So we've got not this one, not the payroll. We got FICA for OASDI, HIFIT. Then I'm going to let go not FUTA and SUTA. Those will be involved in the employer taxes. I'm holding down control. We want this 124. Oh, no, we don't want, I'm going to unhighlight that. We want, I'm holding down control, the 225 for FIT, the 243 Group Insurance and the 245 for the union dues. I'm letting go of control, right click and copy. So we'll put that over here in N6 and N6 and right click and paste and we want to paste 123. And then we just need to pull over our amounts. So we'll put our cursor in Q6 and we're going to change the sign to a negative. So instead of hitting equal, we're going to say negative and then go back to the register and we want to pick up this OASDI, enter. Then we're on HI. We want to say negative. We're going to go back to the register for HI, this number and enter. And then the FIT, we're going to say negative. Go back to the register for FIT, this number and enter. And then the group insurance, we're going to say negative. Go back to the register, group insurance and enter. And then union dues, I'm going to put negative. Go back to the register for union and enter. And it looks like we're missing, we're missing the retirement. So I'm going to copy this one, highlight that copy, right click and copy. We'll paste that right here in N11, right click and paste 123. And then we're going to go back to Q11, negative. Go back to the register and pick up the 401K and enter. So now we have, of course, these are the credits, adding up to 20,372. 27 does not equal the debit. If we select all of them, it adds up to what we need, 2770523, the difference, which will be a credit. Now that should match if we go back to the register, the net pay. So that'll equal the net pay. So let's do that. And we're going to see, I'm going to do that with a plug formula, which is negative SUM, double click the SUM function, highlight from the salaries and wages down to the all the, the debits minus the credits, all the debits and credits and enter 2770523, back to the earnings record, just to double check 2770523. So back to the trial balance. Okay. And then so that's going to go to, that's going to be the net check that we're going to pay. So I'm going to take that out of the checking account. So we'll highlight the checking account, right click and copy. We're going to put that in in 12, right click and paste 123. So there's our journal entry. Now we're going to post this to the GL. I'll try to do this a bit faster. So these are all going to be in the same area. So it's going to be easier to find this one's going to be all the way to the end because it's so it's 502. So it's going to be our second income statement account. So we're looking for 502 first, it's in order, assets and then liabilities and then equity and then income and then expenses. So we're looking for 502. Here is our salaries and wages and BM 20111 is the date and in BN 20, I'm going to say equals. I'm just going to hold down the left arrow, which will take us all the way over and scroll up to that 4877 and enter. So there's our amount, our wages, our expenses went up from 96973 50 by 4877 52 145 51. And of course, it's exactly the same because we're mimicking the data from payroll to payroll at this point. So we're going to scroll back over and that's going to be our first one. Now for the rest of them, I'm going to freeze the pains so that this side will remain here every time we scroll over. To do that, I'm going to go to sell ad one. I'm going to go to freeze pains and freeze pains. So then I'm going to scroll over. I'm going to find 215 and we'll just find all of all of these liabilities. That's going to be down here and they should all be pretty close to each other. So I'm not going to go back and forth. In other words, this time we're just going to go scroll this way. We're looking for 215. There's 215 here in as 12, we're going to say 11, one, the date. And then an AT 12 equals point to that 2009 80 81. And there it is. Then we're looking for 220. So that's going to be the next one. So 220 is here in a w 12. As of 11, and then in a X 12 equals that 697 12 and enter. Then for looking for the 225. So we're at 220, 225 should be around here somewhere. We have to skip a couple. It's going to be 225. Here's cell 225 in BE 10, we're going to say 11, one in BF 10 equals. And we're going to point to the 225, which is that 8404 13 and enter. Then we're looking for 243. So 243 looks like it's underneath here 243. I'm on BE 2311 one tab BF 23 equals scrolling up a bit to that 243 that 5500. So there we have that. Then we're looking for 245. 245 is here. Scroll to the right. 245 11 one. And we're going to say this equals. Here's the 245 or picking up that 16, bringing the balance up from 32 by 16 to 48. And then we have the 247. So scrolling down here's the 247 as of 11 one. So in cell BGA 23 equals the 2774 20 and enter. And then the checking account, here's the checking account, that's going to be our first account. So if I put my cursor right to the left of the highlighted cells and go right, we're going to the checking account, which is here on AK 1011 one. We're going to say this equals that 27705 23 and enter, bringing the balance down to 482902. We can see that then on the trial balance here. So if we go back to the trial balance, here's our information on the trial balance. If we scroll back down, we can see now that these totals have pulled over. Now we owe 2980 81 697 8404 FIT and the group insurance down to the retirement. We also note that the salaries expense has gone up here. So we owe more for the salaries that brings net income down. And our debits minus our credits are zero, meaning debits do equal the credits at this time. Next journal entry, we're going to say that we're going to pick up the the employer taxes. So if we go back to the payroll register, we want to pick up this information. Now the employer taxes OASDI HI FUTA SUTA. These two are matching. So we saw that as a deduction in the employee section. These two are employer taxes only federal unemployment, state unemployment. So we'll pick up these numbers back to our our journal. So we're going to say that in essence, we need to pick up the 215, the FICA, the Medicare, the FUTA and SUTA. So these are the ones we want. We're going to highlight those or select those, right click and copy those. We'll put that underneath the date here because they're going to be credits. So it's an N15, right click and paste 123. And then the debit's going to go on top and the debit's going to be the payroll taxes. So 520 here, right click and copy. We're going to put that up top and N14, right click and paste 123. Make this a little smaller. Okay. So now we just need to pull this information. I'm going to pull this information for all the credits. And then the debits will be the sum of them. So we're over here in Q15. Instead of selecting equals, we're going to put negative in order to flip the sign. And then we'll go back to the register here. And we're looking for the OASDI. So that's the one on U23. Enter. Next one, we're in the FICA, HI. And that's the Medicare equals or negative, not equals negative. And then scroll back to our register. We're picking up the HI, the 69712. Enter. Now the FUTA and SUTA are zero. So I'm just going to put zero here. And I'm not even going to post these. I just want to show the symmetry in the journal entry to show them here. And note that they're going to be zero. So note the difference in our journal entry there. Okay. So then we're going to add these up. And they add up to 367793. We're going to put the debit there. We're going to do that with our plug formula, which is negative SUM. Double click the sum function. I'm going to move this out of the way. And we're going to highlight that information. So there's our debit. So there it is. So now we'll post this out. So we're looking for 520 first. That's going to be on our income statement. Here's 520, the third income statement accounts. If we go to the general ledger over here, we've got the assets, we've got the liabilities, then we've got the income statement accounts. We're looking for 520. 520. Here we go. So it's on BQ8111. And then BR8 equals, we'll scroll down just a bit and we want to pick up that 367793, bringing the balance up to 12,67753. If we go to the left of the frozen screens and then click right, then that balance should be here as well. And then we'll post both of these at the same time or without going back to the trial balance. So the 215, if we go to the right, 215 of course is going to be right here. So if we go to the right, we're looking for 215. I think it's going to be up top. Here it is, 215. And now we're on 111 again. So 211, we've got the same amount. It's going to be here again. We're going to say this equals and make sure we're picking up the right journal entry. We don't want this number up here, even though it'll be the same. We want this number there. So we're picking up that 2890 and Enter. It's actually 2980. And then we're going to do the HI, which is 220. So 220, it's going to be right next to it. So here it is on AW13. We're going to say 111. And then in AX13, we will say equals and point to that 69712 and Enter. So there we have that, bringing the balance up here. Now I won't post these two because once again, it doesn't look like, obviously there's nothing there on those two. So we're good there. And so if we go back to our balance, going to the left of the frozen screens and then going down, we see that we should be back in balance here, the effect on net income being the payroll expense portion. At this point in time, we've got these liabilities now that we're going to have to just pay at some point. We took these out of the payroll check and or that's our payroll liability, which we now will have to pay at some point. We're going to say that we're going to pay it on the 15th. So remember the payroll ended in October and then we paid, we processed payroll November 1st. And now we're going to pay it on 1115. So we're basically going to make this payment for these amounts here. So what we're going to do is we're going to take all these amounts that we owe. We're going to make the payment for them. So that includes the, not the payroll tax, the 215, the HI, there's nothing in Futen Suta because those have been totally, the cap has been reached. So therefore we don't owe any money for it. I'm holding down control. I'm letting go here. I'm holding down control and then highlighting the FIT. And that's all we need. The FIT should do it. So we're going to copy that. I'm letting go of control, right click and copy. And that's going to go in in 20 right click and paste 123 values only. So that's going to be what we have now. I'm just going to pick the exact same numbers up here over here in our journal entry. So we'll put our cursor here in Q20 and we're picking up this number. So I'm just going to type it in there negative 5961.61. Then we're picking up this number for HI. So here's HI, we're picking up this number negative, actually, I'm sorry, these should be debits. These should be debits. So I'm going to be on the debit side because we want to make this go down to zero. So we're on the debit side. And this is going to be 5961.61 for the FICA Social Security. The Medicare is going to be 1394.25. And the FIT here will be 8404.14. So that's what we have there. And then we'll sum that up. And that's going to be the cash that's going to come out of cash here. So we'll be in Q23, negative SUM, our plug formula, the sum formula, double click the sum, highlight these cells, and enter. So that's going to be this total that's coming out of cash. So here's cash, going to right click on that copy, scroll down, that's going to be in N23, right click and paste 123. Okay, so now we're just going to post this. So here's 215. Here's 215 on the trial balance. It's going to be the third account that is a liability. So here's assets and then liabilities. And here is 215. So we are on 1115 is the date. And we're in AT14 equals, we're going to point to that 596161. And that's going to bring the balance back down to zero. So note the pattern here, employee portion, employer portion paid both, employee portion, employer portion paid both, employee employer paid both. Okay, and then we're going to do the same for the HI, which is 220, account 220. So here is accounts 220, we're going to say this is 1115. And then we're in AX7AX14 equals and we'll point to this 1394. And that'll bring the balance back down to zero. Again, these are the FICA taxes, same pattern, employee portion, employer portion paid both of them, employee portion, employer portion paid both of them, employee portion, employer portion paid both of them. Now we don't have anything in the HI or I'm sorry, the FUTA or the SUTA. So we can just go to our trial balance over here. I'm just clicked to the right a few times to get to the trial balance. And we're out of balance by that 7355, because we need to record the 225 for the FIT. So scroll back over 225, FIT, FIT 225. So it's 223, 225. So this is on 1115, 225, we're in BF11 equals. Then we scroll back down. Remember to be careful on which which number we're picking up here, we're on the correct journal entry down here. Hopefully I've picked up the correct journal entry every time. And then we've paid that off. So it goes back down to zero. And this one, of course, only has an employee portion, no employer portion paid off employee portion, we paid it off employee paid it off. Okay, and then we're going to go to the cash account. And that of course is our first account here. So we're going to go to cash. Here's cash, it's going to be on 1115, al 11 in al 11, we're going to say equals. Scroll down just a bit, pick up that 15760 and enter. So that brings a balance from 482902 down by 15760 to 46714205. We should see that then on the trial balance here as well. And if we scroll down, we can see that we're back in balance, screen zeros, net income not affected by this last journal entry, no income statement accounts. It's just like paying off accounts payable paying off on account. And it brought down all the payable accounts. So this one went down to zero, zero, zero, we don't own anything there anymore. We're not paying off the group and we're not going to deal with the group insurance union payable, those are just going to go up as a liability perspective. And then we're not focusing there when we're doing the payment methods because those could differ depending on the group insurance that we have and how we're paying off the win and how we pay off the group insurance. And the union, the union dues, we'd obviously pay the union retirement plan. We'd have to set up what, you know, the retirement plan to make sure that we have the contributions made for future obligations there. End simulation, end the simulation!