Say No to Columbus Day Essay Example for Free

Say No to Columbus Day Essay It is my belief that although many people celebrate the holiday of Columbus Day, that it should be celebrated because Christopher Columbus was not who he had seemed to be. I have learned that not only did he not know where he was, but he wasn’t even the first to discover the New World. He also committed a mass genocide against the Arawak’s. Columbus Day is a U.S. holiday that commemorates the landing of Christopher Columbus in the New World on October 12, 1492. Columbus Day was unofficially celebrated in a number of cities and states as early as the 18th century but did not become a federal holiday until the 1937. For many, the holiday is a way of both honoring Columbus achievements and celebrating Italian-American heritage. Throughout its history, Columbus Day and the man who inspired it have generated controversy, and many alternatives to the holiday have appeared in recent years When Columbus first arrived at the Bahamas, he was greeted by the Arawak Indians who showered him and his crew with gifts and food. After being around them for some time, he decided to take the search for valuable items to a new level. He took some of the people by force and demanded to know where the materials like gold and such were located and then he forced them to show him and start to find them, sort of like slaves. He also learned that the Arawak people were so generous that they would give him anything he asked them for; he then proceeded to ask them for nearly all of their belongings which had any monetary value. The fact of him doing this is easily enough to prove that he was just out for money and did not care about any of the Arawak Indians or his crew for that matter. He is said to have been greedy enough to take credit for finding land even though a crew member, Rodrigo, had found it first and it is also said that he is to have taken the $10,000 yearly pension for life (Source B). The second treachery Columbus was a part of was the taking of the Arawak Indians as slaves and servants, here is a quote from his journal: â€Å"They would make fine servants†¦With fifty men we could subjugate them and make them do whatever we want† (Source B). This just shows that he is a man who doesn’t care about other people’s feelings and is perfectly fine with killing and enslavement, two things America is against. In total, the records show that originally, Columbus rounded up 1,500 Indians, he chose 500 as the best, killed the other 1,000, and 200 died on the ship due to poor living conditions and starvation. The 300 who were left were auctioned off as slaves in Spain. Nearly all of the rest of the Arawak people were killed by foreign disease. A third and final reason why we should not celebrate Columbus Day is because Christopher Columbus did not find North America on purpose and he was also not the first to find the continent. Leif Ericsson of the Vikings found North America and had already established a settlement in Nova Scotia by the time Christopher Columbus found his way here which just proves that his skills as a navigator and a sailor were not even very great, if he kept sailing to Asia and had not found North America, he would have done a circle around the world, missed Asia and ran into Africa. Many Americans view Columbus as a heroic figure whom is celebrated every year. Children look up to him, as an amazing person for being able to â€Å"discover† America and citizens are able to spend a whole day off from work/school to reflect on his greatness. However, this greatness should in no way be glorified, because it is absurd to call Columbus a hero. Columbus had taken credit for things that he didn’t accomplish, brutally abused Native Americans and caused slave trade, which led to mistreatment of Native Americans for years to come. I strongly believe that Columbus day should not be celebrated because of the torture, slavery, and lying that was caused by him. Columbus had taken credit for things that he didn’t accomplish. He wasn’t the first to discover America since there were already people living there  and others had known about this land. Also, there was a myth being taught at schools that had said Columbus was the one to prove the earth was round. Many educated Europeans had already believed in the world not being flat during the time of Columbus. However, those who didn’t agree with this statement mocked the ones who did. Lastly, Columbus was not the first non-American to discover the new world. â€Å"There is, indeed, considerable evidence that people from all around the world, including Europe, had visited the Americas for trade, fishing, refuge, and even settlement.† (Source: Why We Should Abolish Columbus Day by G Rebecca Dobbs) Therefore, Columbus had not truly succeeded in the things we know about him and did more negative things than positive. Columbus Day, a holiday dedicated to the famous explorer for his achievement of arriving in the New World. We construct plays, arrange parades, and have erected monuments of Columbus to praise him for his discovery; for he had triggered the wave of European interest in the Americas. When it comes to the roots of Columbus’s arrival in Hispaniola, most people think that he arrived on an island with primitive natives who gladly gave up their land to him†¦without so much as a complaint. Only recently have the true accounts of his expedition come to light. Nowadays, the innocent and naive tale of Columbus’s discovery has turned into a story about a horrifying and unjust conquering of a land, and the domination of its inhabitants. When Christopher Columbus arrived in Hispaniola in 1492, he had thought that he arrived in India, and he expected for the land to be inhabited by the Indians. Instead he landed in present day Hispaniola, which was home to the friendly, and defe nseless, Arawak people (also known as the Taino people). They had never seen Europeans before with their giant ships, extravagant clothing, and strange language; so they were excited and interested in meeting Columbus and his crew. The Arawak brought the Europeans gifts, food, and water. They wanted to open their home to the newcomers, and hoped to be able to become acquaintances with them and that they would trade with each other. Instead of returning the natives’ generosity and kindness, Columbus treated them cruelly, by making them slaves and forcing them to work to exhaustion and death, slaughtering thousands of men, women, and children till there was only five hundred Arawaks left by 1550, and not giving them  enough food, so they died from famish. Christopher Columbus has been viewed as a hero for several centuries. Children in elementary schools all over the nation are taught that he discovered America. However, there were many other people who were indigenous to the land already and the Vikings arrived in America almost 500 years before Columbus. Christopher Columbus, as it turned out, was responsible for widespread genocide; he permitted his men to rape, murder, mutilate and enslave indigenous people. The evil deeds of Columbus far outweigh the few accomplishments he achieved. It doesn’t make sense for the United States to recognize this supposed Christian with a national holiday, so America should stop celebrating Columbus Day. The initial recorded Columbus Day celebration in the United States was on October 12, 1792. Nevertheless, the first official Columbus Day happened in 1892, when President Harrison issued a proclamation for Americans to commemorate the day. The Knights of Columbus lobbied state legislatures to legalize the holiday. Colorado did so on April 1, 1907. New York followed suit in 1909. In 1971, Columbus Day was designated as a federal holiday on the second Monday of October (Library of Congress).

ZARA Clothing Performance Analysis

ZARA Clothing Performance Analysis Zara is the largest division and flagship brand of the Spanish retail group Inditex. It sells up-to-the-minute fashionability at low prices, in stores that are clearly focused on one particular market (Slack, 2006). The first store opened by accident in 1975 due to a large pyjamas order cancellation. This typically can be said to be an emergent strategy as the Zara store today was not an intended strategy. Vertically integrated, Zara controls most of the processes in the supply chain whereby 50% of the products are manufactured in Spain, 26% in the rest of Europe and 24% in Asian countries. Zara outsources products of high labour intensive processes but maintains in-house capital intensive processes, protecting knowledge and know-how. It takes less than two weeks for a skirt to get from Zaras design team in Spain to a Zara stores in any part of the globe, as much as 12 times faster than the competition. And with shorter lead times, Zara can ship fewer pieces, in a greater variety of styles, more often and they can more easily cancel lines that dont sell as well, avoiding inventory backlogs. (Thinking Made Easy, 2009) This quick response capacity of Zara is made possible by the 3 main stages that define the competitive edge of the company: design, manufacturing and distribution. This strategy is embraced to focus on the operations which can enhance cost efficiency and hence Zaras internalization. Other production activities are completed via a network of about 500 subcontractors in close proximity to Zaras operations at La Coruna. Mr. Ortega the CEO of the Inditex, the parent company of Zara, once said that the secret to retail success is to have five fingers touching the factory and five touching the customer. (Nigel Slack, 2008) This paper uses the models and frameworks of the Operations Strategy module to describe analyze how Zaras operations strategy led to a sustainable competitive advantage in the global apparel industry. What is Operations Strategy? Just as there is no overall agreement about what strategy means, there is no universal agreement on how operations strategy should be described. Four distinct perspectives have emerged on the description as illustrated in Fig. 1 below (Nigel Slack, 2008): Top down vs. Bottom up: Zara boosted its innovation in a fast changing market by adapting the bottom up perspective of strategy in its operations. This is a key driver of competitive advantage through constant innovation to develop new-products that provide customers with new perceived benefits. Zara benefits from an organizational culture that allows information exchange, risk taking, experimentation and learning from failures. Market Requirements vs. Operations Resource: Whatever the operations strategy of an organization, it must in some way reflect the requirements of the organizations market. The fashion market is a fast changing one characterized by quick shifts in consumer demands. As described by Inditex CEO, Jose Maria Castellano, the fashion world is in constant flux and is driven not by supply but by customer demand. We need to give consumers what they want, and if I go to South America or Asia to make clothes, I simply cant move fast enough. How do Zaras operations resources help it to compete in its market? Zara has remained focused on its core philosophy that creativity and quality design together with a rapid response to market demands will yield profitable results. Its business model incorporates the following operational goals: To develop a system the requires short lead times To decrease production quantities and inventory To increase variety of styles/choice. We can deduce that operations strategy is concerned with the reconciliation of market requirements and operations resources. Key drivers of this reconciliation are the importance of setting appropriate performance objectives and understanding the decision areas that determine resource deployment. Factors affecting Zaras Strategic Decisions: Capacity Zara employs a chase demand capacity management in its operations. Spare manufacturing capacity is mirrored in the companys storage function, where up to 400 extra staff can be drafted in during busty periods. As new stock delivery schedules are regimented, customers know when new stock is due and traffic in stores is heavier at such times. As a result, the company is able to adjust its resources to match the demands as appropriate. Procurement and production planners make preliminary, but crucial, estimates of manufacturing costs and available capacity. The cross-functional teams can examine prototypes in the hall, choose a design, and commit resources for its production and introduction in a few hours, if necessary. (Ferdows Kasra, 2005) A small change in retail orders, for example, can result in wide fluctuations in factory orders after its transmitted through wholesalers and distributors. In an industry that traditionally allows retailers to change a maximum of 20 percent of their orders once the season has started, Zara lets them adjust 40 percent to 50 percent. In this way, Zara avoids costly overproduction and the subsequent sales and discounting prevalent in the industry. Supply Networks The vertical Integration advantage can be seen in Zaras centralized logistics and distribution. Zara designs around 10,000 new models every year and replenishes ranges within every one of its 650 retail stores twice per week, but in strictly limited quantities of stock. This ensures Zaras brand promise to customers of exclusivity, and also of design freshness. But it also avoids build-up of large quantities of unpopular stock. Zaras system has to deal with something in the realm of 300,000 new stock-keeping units (SKUs), on average, every year. (Ferdows Kasra, 2005). It outsources less manufacturing (only labour intensive tasks mainly the sewing) than its competitors hence can react quickly to seasonality and unforeseen demand. Zara avoids building inventories in any part of its supply chain from raw materials to end user. Process Technology Zaras communication and coordination through high technology information systems is one of Zaras success factors relative to its competitors. Its customized handheld computers support the connection between the retail stores and headquarters. These PDAs transmit all kinds of information (hard data as orders and sales trends and such soft data as customer reactions and the buzz around a new style). The constant flow of updated data mitigates the so-called bullwhip effect-the tendency of supply chains (and all open-loop information systems) to amplify small disturbances. Development and Organization This fast fashion system depends on a constant exchange of information throughout every part of Zaras supply chain-from customers to store managers, from store managers to market specialists and designers, from designers to production staff, from buyers to subcontractors, from warehouse managers to distributors, and so on Zaras organization, operational procedures, performance measures, and even its office layouts are all designed to make information transfer easy. By having operations in close- proximity to its headquarters allowed for better and faster communication between functional areas for faster decision making. Key success objectives for Zaras Performance: Speed: Speed and responsiveness to Market, Zara has changed the way clothing industry works where deigning, production and delivery to the retailers requires period of six months. The design and distribution cycle of the company takes just 10-15days in the whole process. Zaras speed to market in product development exceeds the capabilities of its competitors. This in itself provides additional value to stakeholders, customers, and stores in producing quality clothing at affordable prices. The proximity of their manufacturing and operational processes allows Zara to maintain the flexibility necessary to design and produce over 12000 new items annually. This capability allows Zara to achieve their strategy of expedited response to consumer demand. The process of obtaining market information and relaying it to design and production teams expedites product development by shortening the throughput time of their products from design to store. Dependability: Due to Zaras ownership and control of production, they ensure timely delivery and service. Although most of their stores run out of stock, signifying that they have low dependability in terms of product availability, another perspective of dependability in terms of keeping to date with fashion is achieved. Quality: Zara brand is synonymous with the cutting edge of fashion at affordable prices. Another Quality advantage is the added sense of quality to the product as the tags would be labelled with made in Europe rather than made in China due to Zaras trade-off between Low labour costs in Asia and operational efficiency. Flexibility: Designers (of average age 26) draw the design sketches then discuss it with market specials and planning procurement staff illustrating a flexibility of ideas generation and on the other hand the huge number of designs reflects the ability to meet almost all the fashion requirements by customers of all ages (up to 55). This adaptive model rather than traditional merchandising is very different from its competitors. Many competitors rely on a small elite design team that plans both design and production needs well in advance. Stores have little autonomy in deciding which products to display or put on sale because Headquarters plans accordingly and ships quantities as forecasted. Zara owned many of the fabric dying, processing and cutting equipment that provided Zara added control and flexibility to adopt new trends on demand. The added flexibility helped Zara on two fronts: shorter lead times and fewer inventories. (OPPapers.com, 2010) Cost: Zara produces most of its products in Europe. Compared to their competitors, they outsource very little to Asia. Though the cost of production in Spain is 17-20% more expensive than Asia, Zara does have a competitive advantage over its competitors in regards to operations. Though there is a cost advantage in their approach in regards to labour, the lack of flexibility in changing orders based on current trends hinders their operational efficiencies. Inventory costs are higher for competitors because orders are placed for a whole season well in advance and then held in distribution facilities until periodic shipment to stores. Lower inventory cost is a key sustainable advantage as it enables Zara to manufacture and sell its products at cheaper prices. Conclusion The smooth integration between Zara business strategy and it is operation strategy as illustrated in the strategic matrix below brought about a promotion of innovativeness through a blending of its performance objectives and decision areas. This aligned Zara operations with its business strategy, ensuring comprehensiveness, correspondence and coherence to achieve its mark in the garment industry as a world leader today. Zara has demonstrated that market flexibility and lean inventories may be even more important than cheap labour, an insight that just might reverse the and its success is based on controlling all the steps of manufacturing clothes: from design to fabric to manufacturing, distribution and sales in order to cut costs and make huge gains in speed and flexibility. In the fashion industry, where trends change daily, Getting a good strategic mix in operations is key to a retailers survival.

Abolition Of Man Essay -- essays research papers

Every culture ever known has operated under a system of values. Many varied on exact principles, but most applied the idea of Natural Law. Or, as C.S. Lewis would refer to it in his Abolition of Man, the Tao. In this particular book Lewis discusses the implications that would follow could man overcome this basic value system that has been in place since the development of rational thought. However, paradoxical as his opinion may seem, he holds that to step beyond the Tao is to plunge into nothingness. Simply put, it is his claim that to destroy, or even fundamentally change, man’s basic value system is to destroy man himself.   Ã‚  Ã‚  Ã‚  Ã‚  Lewis states late in the book that, â€Å"They are not men at all. Stepping outside the Tao, they have stepped into the void(64).† The empty â€Å"they† that Lewis is referring to those that would seek to move beyond the Tao. Acceptance in the belief that the Tao is the rational contents of everyman, which Lewis asserts openly in the text, is to say that he has moved beyond all that makes him man. Although the idea of overcoming the Tao leading to nothingness in man is somewhat abstract, Lewis explains it in different terms later. He discusses the qualitative value of things be saying, â€Å"It is not the greatest of modern scientists who feel most sure that the object, stripped of its qualitative properties and reduced to mere quantity, is wholly real(70).† This is to say that it is the Tao that gives man his qualitative properties and ...

Rhetoric Description :: essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  The blinding sun light spilled onto my exhausted underside from the window across the room as the unlaundered shirt was whisked away. The sight of the dank pullover was replaced with an anxious peering face. I knew that look in his face well. He had grown imaginative last night and was staring at my strained body, almost seemingly considering if what he had in mind might be too much for my experienced frame. Then as if he had made his decision a smile broke his expression and with the tip of his toe he flipped me into his eager hand and my torturous day was about to make its start. I knew what was in store for me and for a brief moment reminisced about the days when a simple coast down a crevice strewn alley was the extent of it.   Ã‚  Ã‚  Ã‚  Ã‚  He shoved me under his arm and flew down the stairs to the checkered floor of his kitchen. I gripped myself as I was tossed to clatter against the table and there I lay as he wrestled cabinets’ open and clattered silverware onto the table. The chair shrieked as it was pulled out, as if it was trying with all it’s might to stay rooted in its spot. The sound of slurping cereal was drowned out by the sneak attack of sound beckoning from the other room. He jumped up out of his seat spilling some of the contents of his bowl onto my nose as he sprinted to pacify the shrill wails of the phone. â€Å"Yeah man, it’s sick†¦Ã¢â‚¬ ¦.probably will get me sponsored in no time flat†¦Ã¢â‚¬ ¦yah I’m gonna practice it today, bring your cameras†¦Ã¢â‚¬ ¦Ã¢â‚¬  I’ve heard that conversation before. I knew what it meant. I was ready.   Ã‚  Ã‚  Ã‚  Ã‚  He rushed back into the room threw his meal into the sink with no remorse and flicked me back into his hands with little effort. I was actually starting to feel a bit antsy wondering what was in store for me. His body was throbbing as he pressed me against his ribs and his palms were clammy against my scarred underside. I knew that he was excited and my thoughts synchronized with his own filling me with exhilaration. We trudged to the doorway after he pounced into his chaotically laced shoes and wedged his ear phones on his head echoing the cacophony of an angst filled symphony.   Ã‚  Ã‚  Ã‚  Ã‚  He slammed the front door without looking back and carefully dragged his feet across the coarse surface of the driveway making sure there were no hindrances accumulated to the soles of his feet.

Lets Get Dirty - Our Future Is Compost ::

Let's Get Dirty - Our Future Is Compost Have you ever wondered what happens to your trash after you put it in the garbage can? Most people do not, after all, sanitation workers remove the garbage and it is never seen again. Martin V. Melosi called this "out-of-site, out-of-mind mentality†¦ as long as someone removed wastes from the immediate range of the senses, the problem was solved."1 As a result, garbage disposal is a service that many take for granted. Yet, waste does not just disappear. It must be stored, buried, or burned somewhere. This disposal process has gone on for hundreds of years since populations produced huge amounts of waste. The continued use of landfills and dumps has caused the perception that there is a garbage crisis. Consequently, new techniques to deal with garbage have been attempted.. Recycling is but one example of a solution. Through recycling, old products like aluminum cans and glass bottles would be made into new products. While recycling has enjoyed success in the United States, many question its efficiency. Other suggestions range from shipping garbage to other areas to incineration. All these proposals to the garbage problem go under such scrutiny and examination in an effort to achieve some perfect solution to the disposal problem. One practice enjoying success today is the process of composting. Originally utilized by farmers and in backyards, composting is the natural breaking down of organic materials into soil. The popularity of composting seems reflect people's attitudes and desires to be closer to nature. Compost can occur from levels as small as backyard piles to the heights of corporate composting facilities. When done properly, composting can provide cost benefits and greatly reduce amounts of garbage. Either way, composting is a growing practice that's efficiency grows over time and may become as widespread as garbage collection today. The Garbage Crisis The first question you may be asking yourself is, is there really a garbage crisis? Many would argue there is, and it is easy to see why. The population of the world is always growing; this growth results in increasing consumption. Whether it is food, energy, natural resources, material goods, or property, everyone is involved. Mass consumption leads to an increase in garbage and pollution. The production of cheaper goods that are available to most economic groups has also increased this trend. These factors lead many to believe "that we produce too much garbage.

With Every Drop of Blood: Johnny’s Character Development

They hear a shrill scream and both slam their bodies to the ground. Johnny gets up a minute later, covered In a thick layer of dirt, and realized that Cush Is dead still and oozing with blood. Johnny could leave Cush there to die, but he carries him onto his wagon and insists that he stay keep Cush company while his leg heals- even though Cush suggested that Johnny leave him and head home.The book With Every Drop of Blood, by James Lincoln Collier and Christopher Collier, is a story about an unlikely friendship between Cush, n African American union soldier, and Johnny, a southern white boy, set during the civil war. In the beginning of the book, Johnny is an ignorant racist. However, Johnny's friendship with Cush helps him overcome his racist views. Johnny is shocked when he is captured by Cush. He is used to being superior to African Americans, not being commanded and pushed around by one.Everyone back home says It Is beneath the dignity of a white man to have to fight â€Å"darkl es† as equals, and Johnny agrees. He is even questioning whether or not Cush has the rains to know how to shoot a rifle. Johnny thinks to himself, â€Å"Darkles weren't smart enough for much, which Is why they had to have white people over them to tell them how to do things† (p. 77). Being surrounded by racists his whole life has shaped Johnny's opinions about black people, but those opinions change as he gets to know Cush better. Johnny starts to see things from the African American's point of view.He pretends to go to bury EJB, when he was really going to make an escape and go head mom. He gets caught by the Union soldiers and brought back to the camp. There, he gets talking to Cush about his former life as a slave. Cush tells Johnny how his back was whipped raw Just for taking a piece of pork from a pig, right after his father was sold off. Johnny thinks about his home, where people said blacks were lazy, greedy, and too dumb to take care of themselves without a mast er. Johnny thinks, â€Å"l never asked a dark how they felt about being slaves.Was everybody back home wrong? ‘ (p. 42) Now he realizes that everything he was told about slavery could be distorted. Because Cush Is an African American In a union uniform, he gets caught by some Confederates who lock him up in an old tobacco barn in Appoint. Johnny pretends that his family owns Cush, and that they really need the extra help on the farm. The Confederates refuse to release Cush, so Johnny leaves the barn without him and goes to look for Colonel Marshall to see if he'll be any help. Marshall is nowhere to be seen, so Johnny asks a man named Mares Mclean.Mclean tells Johnny that the war has ended. The gunshots stop, and the Confederate soldiers release Cush. Johnny stands by the barn with him and thinks â€Å"It was mighty hard to believe that Cush was lower than me. † Then Johnny offers Cush some company on his way home. Johnny goes from a an Ignorant racist to someone that risks his life to save a black talks to Cush, the more he feels empathy for slaves. Johnny ends up becoming very good friends with Cush, and they both save each other's life. Johnny's friendship with Cush helps him overcome his racist views.

Current Liabilities and Payroll Accounting

Teaching Objectives:Make clear the concepts such as current and long-term liabilities and their characteristics, known liabilities, estimated liabilities, contingent liabilities and payroll accounting. Teaching Focus: how to define, classify, measure, report, and analyze these liabilities so that this information is useful to business decision makers. What is liability? A liability is a probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or events.Classifying LiabilitiesLiabilities can be classified into current liabilities and long-term liabilities according to term of payment. Current liabilities are obligations due to be paid or settled within one year or the operating cycle, whichever is longer. They are usually settled by paying out current assets such as cash. notes payable, mortgages payable, bonds payable, and lease obligations)Long-term LiabilitiesLong-term liabilities are obligations not due within one year or the operating cycle, whichever is longer. (notes payable, mortgages payable, bonds payable, and lease obligations)Known LiabilitiesMost liabilities arise from situation with little uncertainty. They are set by agreements, contracts, or laws and are measurable. These liabilities are Known Liabilities, also called definitely determinable liabilities. Known Liabilities include accounts payable, notes payable, payroll, sales taxes payable, unearned revenues and lease obligations Known Liabilities— Sales Taxes Payable Sales taxes are stated as a percent of selling prices. The seller collects sales taxes from customers when sales occur and remits these collections to the proper government agency. Since sellers currently owe these collections to the government, this amount is a current liability. Example:On May 15, 2009, Max Hardware sold tools and supplies for $7,500 that are subject to a 6% sales tax. $7,500 ? 6% = $450 Known Liabilities—unearned revenues Unearned Revenues (also called deferred revenues, collections in advance, and prepayments) are amounts received in advance from customers for future products or services. Example: On May 1, 2009, A-1 Catering received $3,000 in advance for catering a wedding party to take place on July 12, 2009. Known Liabilities—Short-term Note Payable A written promise to pay a specified amount on a definite future date within one year or the company’s operating cycle, whichever is longer.  NOTE GIVEN TO EXTEND CREDIT PERIODA company can replace an account payable with a note payable. A common example is a creditor that requires the substitution of an interst-bearing note for an overdue account payable that does not bear interest. Example: On August 1, 2009, Matrix, Inc. asked Carter, Co. to accept a 90-day, 12% note to replace its existing $5,000 account payable to Carter. Matrix would make the following entry: On October 30, 2009, Matrix, Inc. pays the note plus interest to Carter. Interest expense = $5,000 ? 12%   (90 ? 360) = $150NOTE GIVEN TO BORROW FROM BANKA bank nearly always requires a borrower to sign a promissory note when making a loan. When the note matures, the borrower repays the note with an amount larger than the amount borrowed. This difference between the amount borrowed and the amount repaid is interest.FACE VALUE EQUALS AMOUNT BORROWEDOn September 1, 2009, Jackson Smith borrows $20,000 from American Bank. The note bears interest at 6% per year. Principal and interest are due in 90 days (November 30, 2009). On November 30, 2009, Smith would make the following entry: $20,000 ? 6% ? (90 ? 360) = $300PAYROLL LIABILITIESEmployers incur expenses and liabilities from having employees.   FICA Federal Insurance Contributions Act (FICA)   Medicare Taxes Employers must pay withheld   taxes to the Internal Revenue Service (IRS)   Federal Income Tax State and Local Income Taxes Employers must pay the taxes withheld from employees’ gross pay to the appropriate government agency? Voluntary Deductions Amounts withheld depend on the employee’s request. Examples include union dues, savings accounts, pension contributions, insurance premiums, and charities. Employers owe voluntary amounts withheld from employees’ gross pay to the designated agency. Gross pay is the total compensation an employee earns including wages, salaries, commissions, bonuses, and any compensation earned before deductions. Wages usually refer to payments to employees at an hourly rate. Salaries usually refer to payments to employees at a montly or yearly rate. Net pay, also called or take-home pay, is gross pay less all deductions. Payroll deductions, commonly called withholdings, are amounts withheld from an employee’s gross pay, either required or voluntary. Required deductions result from laws and include income taxes and Social Security taxes. Voluntary deductions, at an employee’s option, include pension and health contributions, union dues, and charitable giving.   WithholdingsRECORDING EMPLOYEE PAYROLL DEDUCTIONSThe entry to record payroll expenses and deductions for an employee might look like this. $4,000 ? 6. 20% = $248 $4,000 ? 1. 45% = $58EMPLOYER PAYROLL TAXESEmployers pay amounts equal to that withheld from the employee’s gross pay.RECORDING EMPLOYER PAYROLL TAXESThe entry to record the employer payroll taxes for January might look like this Current Liabilities and Payroll Accounting Teaching Objectives:Make clear the concepts such as current and long-term liabilities and their characteristics, known liabilities, estimated liabilities, contingent liabilities and payroll accounting. Teaching Focus: how to define, classify, measure, report, and analyze these liabilities so that this information is useful to business decision makers. What is liability? A liability is a probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or events.Classifying LiabilitiesLiabilities can be classified into current liabilities and long-term liabilities according to term of payment. Current liabilities are obligations due to be paid or settled within one year or the operating cycle, whichever is longer. They are usually settled by paying out current assets such as cash. notes payable, mortgages payable, bonds payable, and lease obligations)Long-term LiabilitiesLong-term liabilities are obligations not due within one year or the operating cycle, whichever is longer. (notes payable, mortgages payable, bonds payable, and lease obligations)Known LiabilitiesMost liabilities arise from situation with little uncertainty. They are set by agreements, contracts, or laws and are measurable. These liabilities are Known Liabilities, also called definitely determinable liabilities. Known Liabilities include accounts payable, notes payable, payroll, sales taxes payable, unearned revenues and lease obligations Known Liabilities— Sales Taxes Payable Sales taxes are stated as a percent of selling prices. The seller collects sales taxes from customers when sales occur and remits these collections to the proper government agency. Since sellers currently owe these collections to the government, this amount is a current liability. Example:On May 15, 2009, Max Hardware sold tools and supplies for $7,500 that are subject to a 6% sales tax. $7,500 ? 6% = $450 Known Liabilities—unearned revenues Unearned Revenues (also called deferred revenues, collections in advance, and prepayments) are amounts received in advance from customers for future products or services. Example: On May 1, 2009, A-1 Catering received $3,000 in advance for catering a wedding party to take place on July 12, 2009. Known Liabilities—Short-term Note Payable A written promise to pay a specified amount on a definite future date within one year or the company’s operating cycle, whichever is longer.  NOTE GIVEN TO EXTEND CREDIT PERIODA company can replace an account payable with a note payable. A common example is a creditor that requires the substitution of an interst-bearing note for an overdue account payable that does not bear interest. Example: On August 1, 2009, Matrix, Inc. asked Carter, Co. to accept a 90-day, 12% note to replace its existing $5,000 account payable to Carter. Matrix would make the following entry: On October 30, 2009, Matrix, Inc. pays the note plus interest to Carter. Interest expense = $5,000 ? 12%   (90 ? 360) = $150NOTE GIVEN TO BORROW FROM BANKA bank nearly always requires a borrower to sign a promissory note when making a loan. When the note matures, the borrower repays the note with an amount larger than the amount borrowed. This difference between the amount borrowed and the amount repaid is interest.FACE VALUE EQUALS AMOUNT BORROWEDOn September 1, 2009, Jackson Smith borrows $20,000 from American Bank. The note bears interest at 6% per year. Principal and interest are due in 90 days (November 30, 2009). On November 30, 2009, Smith would make the following entry: $20,000 ? 6% ? (90 ? 360) = $300PAYROLL LIABILITIESEmployers incur expenses and liabilities from having employees.   FICA Federal Insurance Contributions Act (FICA)   Medicare Taxes Employers must pay withheld   taxes to the Internal Revenue Service (IRS)   Federal Income Tax State and Local Income Taxes Employers must pay the taxes withheld from employees’ gross pay to the appropriate government agency? Voluntary Deductions Amounts withheld depend on the employee’s request. Examples include union dues, savings accounts, pension contributions, insurance premiums, and charities. Employers owe voluntary amounts withheld from employees’ gross pay to the designated agency. Gross pay is the total compensation an employee earns including wages, salaries, commissions, bonuses, and any compensation earned before deductions. Wages usually refer to payments to employees at an hourly rate. Salaries usually refer to payments to employees at a montly or yearly rate. Net pay, also called or take-home pay, is gross pay less all deductions. Payroll deductions, commonly called withholdings, are amounts withheld from an employee’s gross pay, either required or voluntary. Required deductions result from laws and include income taxes and Social Security taxes. Voluntary deductions, at an employee’s option, include pension and health contributions, union dues, and charitable giving.   WithholdingsRECORDING EMPLOYEE PAYROLL DEDUCTIONSThe entry to record payroll expenses and deductions for an employee might look like this. $4,000 ? 6. 20% = $248 $4,000 ? 1. 45% = $58EMPLOYER PAYROLL TAXESEmployers pay amounts equal to that withheld from the employee’s gross pay.RECORDING EMPLOYER PAYROLL TAXESThe entry to record the employer payroll taxes for January might look like this