LOL. How are current liabilities of know amounts accounted for a) What are three main characteristics of liabilities? im) b) ABC Company made a cash sale of $1,000 and the company collected an additional 7% sales tax, the journal entry would be: Date Accounts and Explanation Debit Credit c) During the month, ABC Company delivered of the work to earn of the initial $2,000 recorded previously as unearned revenue. The adjusting entry to show some work had been completed and some revenue had been now earned would be: Date Accounts and Explanation Debit Credit d) During the month, ABC Company purchased merchandise inventory with a 10%, 90-day note payable, for $1,000. The company uses the perpetual inventory system. The entry to record the note and purchase of the inventory is: Date Accounts and Explanation Debit Credit e) Based on the information in letter d above, assume ABC Company pays the note when due 90 days later. The journal entry is (take interest expense to the nearest dollar): Date Accounts and Explanation Debit Credit LO2. How do companies account for and record payroll a) List some of the common withholdings deducted from the employee's pay: b) Journalize the employer payroll taxes assuming that the FICA- OASDI Taxes is $400, FICA-Medicare Taxes is $100, Federal Unemployment Taxes is $10, and State Unemployment Taxes is $25. Date Accounts and Explanation Debit Credit Payroll Tax Expense FICA-OASDI Taxes Payable FICA-Medicare Taxes Payable Federal Unemployment Taxes Payable State Unemployment Taxes Payable LOS. How do we use the times-interest-earned ratio to evaluate business performance a) What is the formula for times-interest-earned? b) If net income is $1,000, income tax expense is $100, and interest expense is $300, what is times-interest-earned (take to two decimal places)