Between the end of one month and the 15th day of the next month, the balance in the employer’s business bank account has been getting smaller and smaller. An employee prepares the next payroll and correctly computes the necessary withholding taxes. The employer is supposed to pay accumulated employment taxes on the 15th of the next month. Payday is the last day of the month. However, the employer has used the funds withheld from employees to pay some of the business’s bills. He hopes that enough of the customers who owe him money will pay their outstanding debts. If his assumption is true, the checking account will have enough in it to pay the federal deposit on the 15th of the month. Is the employer acting ethically? After all, he says he intends to have enough money in the account for the deposit. Explain your answer.
Answer to relevant QuestionsWhat is the difference between a wholesale business and a retail business? Why is an accounts receivable ledger or an accounts payable ledger necessary for a business with large numbers of credit customers or large numbers of vendors / suppliers? Record the following transactions in general journal form. a. Sold merchandise on account to D. North, invoice no. 4556, $ 2,515.25. b. Sold merchandise on account to NexStar Industries, invoice no. 4557, $ 775.00. c. ...Williams Corporation had the following purchases for May: May 3 Bought ten lawn rakes from Owens Company, invoice no. J34Y9, $ 250.25; terms net 15 days; dated May 1; FOB shipping point, freight prepaid and added to the ...Lowery’s Pet Depot records purchase transactions in the general journal. The company is located in Cleveland, Ohio. In addition to a general ledger, Lowery’s Pet Depot also uses an accounts payable ledger. Transactions ...
Post your question