Potvin has an annual payroll of $190,000. In​ addition, the company incurs payroll tax expense of 6​% of the annual payroll. At December 31​, Potvin owes salaries of $9,500 and FICA and other payroll tax of $550. The company will pay these amounts early next year. Requirement
Show what Potvin will report for the foregoing on its income statement for the year and on its​ year-end balance sheet. ​(If an input field is not used in the table leave the field​ empty; do not select a label or enter a​ zero.)
Start with the income statement.
Income Statement Account Amount
Show what Boston will report on the year-end balance sheet. Balance Sheet Account Amount Current liabilities: Expenses: Long-term liabilities Payroll tax expense Payroll tax payable Revenues: Salary and wage expense Salary navable