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Netflix, Inc. is the world's leading Internet subscription service for movies and TV shows. The following are several of the accounts included in a recent balance sheet:
1. Accrued Liabilities
2. Prepaid Rent
3. Cash
4. Common Stock
5. Note Payable (long- term)
6. Equipment
7. Retained Earnings
8. Accounts Payable
Required:
1. Indicate how each account normally should be categorized on a classified balance sheet. Use CA for current asset, NCA for noncurrent asset, CL for current liability, NCL for noncurrent liability, and SE for stockholders' equity.
2. Indicate whether the account normally has a debit or credit balance.
Prepare the general journal entry to record the employer's payroll liability. Prepare the general journal entry to record the employer's payroll tax liability.
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