paid employees salaries journal entry

To understand these differences, review each payroll component and determine if the component is a business expense. It is a part of the requirement under the accruals concept in accounting. Their gross pay per period is $2,308. The tools and resources you need to manage your mid-sized business. This is good news for shareholders, creditors, and other stakeholders.

So the employees net pay for the pay period is $1,504. This line item represents the gross payroll expense, which is the total pay earned by your employees. If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience. Intuit, QuickBooks, QB, TurboTax, Mint, Credit Karma, and Mailchimp are registered trademarks of Intuit Inc. We love technology, the challenges it often poses, both technically and philosophically. For example, you may have heard of accrual accounting, which differs from cash accounting. All thats to say your time-off accrual might look different than my payroll accrual examples. Find articles, video tutorials, and more. According to the Golden rules of accounting (Being salary paid by cheque) 2.

Intuit accepts no responsibility for the accuracy, legality, or content on these sites. The QuickBooks blog can walk you through, 1. Its a good idea to pay your employees on a regular basis. Ryan Lasker is an SMB accounting expert writing for The Ascent and The Motley Fool. Now, put it together by recording it in your accounting software. Payroll expenses are what employers pay to hire workers. Jobs report: Are small business wages keeping up with inflation? Enter the account number in the Posting Reference column of the journal as you post each amount. Terms and conditions, features, support, pricing, and service options subject to change without notice. This is recorded to the expense category Payroll Gross Pay, and is included on your Profit & Loss report. Lets calculate accrued payroll using my fictitious candy factory, RL Good Candy, based in the District of Columbia. The net pay is the the dollar amount you pay the employees directly. The tools and resources you need to get your new business idea off the ground. Payroll accrual refers to the payable funds that accumulate and that a business must pay their workers on payday. The company can make the journal entry salaries paid by debiting the salaries expense account and if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[728,90],'accountinguide_com-medrectangle-3','ezslot_2',140,'0','0'])};__ez_fad_position('div-gpt-ad-accountinguide_com-medrectangle-3-0');Wage expenses can be a major cost for businesses, particularly those that are labor-intensive. Lets say you process payroll 26 times per year. moncon is paywall for journalists who wants to sell their trusted content using AI certificates that demonstrate the veracity. | WebAs the salary is not yet paid, they have to record a liability on the balance sheet. Their gross pay per period is $2,308. For demonstration purposes, lets break it down. Payroll softwarecan generate thesereports automatically. Terms and conditions, features, support, pricing, and service options subject to change without notice.

Typically, the accounting for wages expense account involves recording these expenses as a part of a single account.

Payroll expenses are the costs associated with hiring employees and independent contractors for your business. Salary is an expense for the business. Websylvester union haitian // paid employees salaries journal entry. The estimated total pay for a Journal Entries, Reconciliations, Etc is $64,037 per year in the United States area, with an average salary of $59,560 per year. This might be employee salaries, health care benefits, payroll taxes, or Social Security. Make sure to submit the forms on time to avoid late fees. Payroll tax returns are complex, so the information you submit must be accurate. Susies gross wages to be paid on the first Monday in January is $1,600 ($600 hourly wages + $1,000 bonus). WebSalary Payable: Definition, Example, Journal Entry, and More Account Payable Definition: Salary payable is the amount of liability or payment of the company towards its employees against the services provided by them but not yet paid at the end of the month, year, or for a specific period. for the last five days of March and that the next payroll date is April 5. Keeping accurate payroll records is important because through your payroll, you are paying bills that, if not paid properly, can cause major problems for your company. The latter will be a portion of your accrued payroll; the former was already accounted for in gross pay. There are extra schedules to calculate withholdings in these situations. The credit side will include the payable to deducted amount and cash paid. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); John recently retired after working as a director of finance for a multinational manufacturing company. WebIn the journal entry, Accounts Receivable has a debit of $5,500. Salaries and Wages Payable imply that the organization owes money to its employees. A payroll accrual starts with recording the total amount an employee earned during the period. Follow these steps for each employee who works at your business: First, calculate the number of hours a given employee worked. The accruing payroll methodology tells you to record compensation in the accounting period -- a month or year -- its earned, even when its not paid until the next period. The tools and resources you need to take your business to the next level. paid employees salaries journal entry. Prsentation Rseau Can Credit Card Issuers Charge for Unauthorized Transactions?

If an amount box does not require, leave it blank. If you want to track the paycheck number, enter it in the Journal no. If youre not sure how to calculate overtime pay, you can check out our informative guide: 3. You may withhold amounts for the employees share of insurance premiums or their retirement contributions, for example. As an example of payroll accounting, if gross pay is 2,000, employee tax is 500, and other deductions are 100, then the net pay due do the employee is 1,400. (A credit up to 5.4 percent is given to companies subject to and current on their SUTA payments). WebPossible Range. As I mentioned, I dont owe FUTA and SUTA on Susies wages since Im accruing payroll at the end of the year, after shes earned more than $7,000 for the year. I nearly dropped my spoon in excitement when I heard Black Widow mention an accounting concept, the one were talking about today. Common payable (liability) accounts include "FICA Taxes Payable," "Federal Income Tax Payable", "State Income Taxes Payable", "Health Insurance Payable" and "Life Insurance Payable". What Do Accountants Do With Accounts Receivable? How to start and run a successful e-commerce business. The Every month they need to spend around $ 10,000 on the salary So, lets learn the rules of accounting. This journal entry occurs at the end of each financial period when companies incur the salaries expense. component and determine if the component is a business expense. The number of pay periods per year determines how much of a workers salary you pay on each payroll date. https://quickbooks.intuit.com/oidam/intuit/sbseg/en_us/Blog/Photography/Stock/accrued-payroll-header-photo-us.jpg, https://https://quickbooks.intuit.com/r/payroll/accrued-payroll/, What is Accrued Payroll? A company, Red Co., incurs $10,000 in wages expense during a fiscal year. Resources to help you fund your small business. The following should be recorded. Or, if youre new to managing employees, read up onhow to do payroll. The deposit frequency varies and depends on the dollar amount. On 15 th August, ABC made payment for the salary of July, so they have to reverse the salary payable and cash balance. 2. Accounting and bookkeeping basics you need to run and grow your business. If your company offers paid time off (PTO) for employees, this should also be accounted for in accrued payroll. Jobs report: Are small business wages keeping up with inflation? The latest product innovations and business insights from QuickBooks. Relevant resources to help start, run, and grow your business. This content is for information purposes only and should not be considered legal, accounting, or tax advice, or a substitute for obtaining such advice specific to your business. Salary Paid journal entry is to record the expense and payment. Enter the total amount paid for the pay period. Payroll journal entries fall under the payroll account and are part of your general ledger. Lets start with payroll taxes. Then, the entry will be, (Being Salary advance adjusted with Salary). WebChoose New Entry, then click Purchase / Payment. Thats because both taxes usually fizzle out early in the year for full-time employees. Pass what you withhold to each taxing authority. Here's how to create a journal entry: Click the Create + icon at the right top. WebThe journal entry to record the hourly payroll's wages and withholdings for the work period of December 1824 is illustrated in Hourly Payroll Entry #1. Accounting for payroll accrual on your balance sheet can be trickybut there are tools that can help. If you pay an employee hourly, the pay period indicates the start and end dates for payroll. To keep tabs on accrued payroll and gain insight into your businesss finances, keep in mind these sources of payroll accrual. So the employees net pay for the pay period is $1,504. Calculate & record accrued payroll | QuickBooks. This reduces the amount of cash that is reported on the balance sheet. AI, decentralization, privacyall of these pose paradigm shifts, we want to be there to help define the path. If something goes wrong, adjusting entries can become a huge choreyoull have to dig through potentially hundreds of records. Amounts you withhold from a workers pay and submit to a third party are not company expenses. According to the Golden rules of accounting a. Harbourfront Technologies. An adjusting entry was made to record $2,000 of accrued salaries at the end of 20X3. Professional Tax is a tax levied by the governments in the respective states on all persons earning income. It is the expense that a company has to pay on a regular basis. In the payroll entry, you record salaries payable, federal taxes payable, state taxes payable, insurance premiums and other deductions specific to your No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customers particular situation. Get help with QuickBooks. Create following journal entries to record advance salary : 1) At the time of payment: Debit: Advance salary (under Loans & advances) Credit: Cash or Bank. A payroll journal entry is the accounting entry used to enter such items into accounting systems. shaquille o'neal house in lafayette louisiana / why is shout stain remover There are four common payroll tax forms. Report your employees wages and deductions first. WebDuring the month, the company has paid wages of $ 35,000 to all employees. Net pay is the amount the worker receivesafter all deductions and withholdings. Also, there is no legal requirement that says that employees shall not preserve books. Prepare a trial balance as of August 31. In most cases, the credit side will be a payable account under the accruals concept in accounting. The company has paid a wage to the worker, it Sign up today to see how you can get started. Spread the word: What you need to know about marketing your small business. In accounting, when you owe someone money -- including your employees -- you record it in your books. Businesses that offer employees defined vacation and sick time need to track how much theyd walk away with if they left the company. The difference will be recorded based on the nature of each deduction. Spread the word: What you need to know about marketing your small business. Now I need to wipe it out. Do as Black Widow says. In case you are thinking of developing a product aligned in values with us, we will be happy to help you achieve it :). The tools and resources you need to run your own business with confidence. By accessing and using this page you agree to the Terms and Conditions. Since it is an expense, it is debited in the Income Statement, with the corresponding entry being a credit to the bank account. that have accrued over a pay period, even if the checks havent gone out yet. This is the final amount that they take home.

If your employees received any bonuses, commission, or other forms of payment in addition to your usual wage expense, its smart to record it too. Add all the debits and enter the total on the bottom line in the debit column. How much investment capital should you accept? Collectively, Red Co. records these items in a single journal entry as follows. 4 Paid accumulated employee salaries of $16,220. Accrued payroll journal entry. So, it will be a debit to the Salary or Salary Payable (if there is already an accrual of liability) and corresponding credit to the Bank account. Apr. Small business payroll accounting uses three basic types of journal entries: initial recording, accrued wages, and manual The tools and resources you need to take your business to the next level. Just getting started? Accordingly, the information provided should not be relied upon as a substitute for independent research. A separate account for payroll can improve visibility on employee payments. paid employees salaries journal entry. Payroll taxes (FICA), health insurance, and retirement contributions, Employer contributions: $200 tax + $100 retirement + $150 insurance. Relief at layoffs and hopes for a second-half recovery may be overheating tech stocks. Its a good idea to pay your employees on a regular basis. So lets learn how to record it in any accounting software. U4PPP Lieu dit "Rotstuden" 67320 WEYER Tl. Usually, the accounting treatment in the wages expense account occurs through the accrual concept in accounting. Employees receive a W-2, which reports gross pay and all tax withholdings for the year. The guidelines consider how much control you have over what the worker does, who provides tools and supplies, and if you have a written contract. Say your business announces annual bonuses in December 2020 but pays them with the first payroll in January 2021. The payroll process requires you to collect information, perform calculations, pay workers, and submit withheld payments to third parties. Celebrating the stories and successes of real small business owners. Contact Applicable laws may vary by state or locality. Then you deduct 20% for federal income taxes and 5% for state income taxes. However, that process does not impact the wages expense account. Typically, companies use a wages expense account for the wage class of employees. What is the accounting for the Wages Expense Account? Additional information and exceptions may apply. His payroll accrual will look like this: Once all the various expenses associated with payroll are accounted for, the total accrued payroll is $2,330. For an employee paid $2,000 every two weeks, the PTO accrual is $200 ($2,000 bi-weekly paycheck 10%). WebJournal Entry for Salary Expense Example Company ABC employs many staffs to work in various departments. Deductions for state and federal income tax withholdings, Unemployment tax (FUTA and SUTA) withholdings, How independent contractors differ from employees, 2. The expense posts in March, when employees worked those hours. These are wages that are owed for the labor performed by your employees and are accounted as a liability until payday, when they become an expense. The former category receives a fixed compensation, while the latter gets compensated based on hourly work. Compensation may impact the order of which offers appear on page, but our editorial opinions and ratings are not influenced by compensation. According to the Golden rules of Submit payroll tax deposits for federal and state income taxes and FICA and FUTA taxes. The expense becomes a part of the income statement as a part of operating expenses. With a well-organized system for income statements, taxes, insurance, etc., it is possible for small businesses to stay on track. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. The first example does not utilize reversing entries. In accounting, payroll journal entries must abide by the accrual principle. L'acception des cookies permettra la lecture et l'analyse des informations ainsi que le bon fonctionnement des technologies associes. The accrual method allows you to match payroll expenses with revenue and posts payroll expenses and liabilities in the same period. For this reason, we always try to ensure that our products have a clear objective to help. Finally, record the amount put aside for the paid leave your employee accrued during the pay period. Between payroll runs, you slowly rack up a debt to your employees. Entry at the time of actual payment of the salary due (Being salary paid) 2. For the month ended 31st December 2020, they had salaries worth $75,000.

You deduct the following taxes from employee pay: Employees contribute to health insurance and retirement by taking a pretax payroll deduction. The 401k payable will present as the current liability until it is paid to the pension fund manager. Lets calculate payroll taxes, contributions, and deductions for Susie. Now, lets say an employees annual gross pay is $60,000. Income taxes withheld:When a business withholds taxes, the company records a liability for the amount it withholds. The column order on the spreadsheet is date, description, debit and credit. Changes to tax laws, adding or losing employees, and changes to tax withholdings may affect your payroll calculations from one pay period to the next. Salary tax is $ 100 per month which company needs to deduct from employees and pay to tax authority. Starting on the next line, on one line each, enter a payable account in the description column and the amount deducted from your employee's pay in the credit (right) column. and localincome taxes from wages. Similarly, cash bonuses earned in one period and paid in the next warrant a payroll accrual. The largest source of accrued payroll is likely to come from salary and wages payable to employees. Let's make a positive Social Impact together. For employers own contribution to PF account (employers contribution Employers ask their employees to declare all their income and tax saving information like insurances, mutual funds, 5 Year Fixed deposits etc. Processing payrollrequires you to collect and manage data, and your payroll expenses may change frequently. Under our rules, we can build bots that make our lifes easier. Readers should verify statements before relying on them. Timely payment not only motivates and built the confidence of the workers and employees but also | Accrued payroll is the process in which the amount of money a business owes or is owed accumulates over time. In addition, if you include a retirement contribution matching program for employees 401(k) accounts, then the amount that you contribute will be included during this step in the calculation too. The journal entry is debiting payroll expense $ 20,000 and credit Salary tax payable $ 1,000, 401k payable $ 2,000 and cash paid $ 17,000. How much investment capital should you accept? Ralisation Bexter. Record an entry to reduce salaries payable and reduce cash once the payroll has been paid. The companys only expense is the gross amount you pay for services. At RL Good Candy, Id accrue 10% of an employees wages for PTO (8 hours PTO earned / 80 hours worked in two weeks). 03 80 90 73 12, Accueil | It may also impact the balance sheet if the wages and other expenses are payable later. The cash will be transferred to the employees bank accounts. Enter the date in the date column. Websylvester union haitian // paid employees salaries journal entry. Companies pay employees through various forms of compensation.

In this case, in the December 31 adjusting entry, the company ABC The employer's portion of FICA tax is one-half of the stated amount. What's your question? To sum up, you can calculate your payroll accrual using this formula: (Hourly wage x hours worked) + (bonuses + commissions + overtime) + (payroll taxes + retirement and insurance) + (PTO). The journal entry for wages expense involves recording various items in the account. In this growing competitive world, every organization needs to retain its loyal and trustworthy staff members and make a timely payment towards wages and salaries to its workers and employees. Get help with QuickBooks. WebThis includes payroll journal entries, which show wages paid and payroll liabilities for the recording time frame. As part of the payroll process, companies have to make journal entries to recognize the expense for wages and labor burden (benefits and taxes) and balance Remember: debits must equal credits in every journal entry. Save the entry, then press Reverse to create a reversing entry on the first day of the present month. Changes to tax laws, adding or losing employees, and changes to tax withholdings may affect your payroll calculations from one pay period to the next. The matching concept presents a more accurate picture of company profit. by Ryan Lasker | This cost includes not only the salaries or hourly wages paid to employees but also payroll taxes, benefits, and other related expenses. Best Homeowners Insurance for New Construction, How to Get Discounts on Homeowners Insurance. At the end of the month or year, record the amount you owe but havent paid to employees with a payroll accrual. It will reduce cash that pays to the workers. Heres Susies accrued wages payroll journal entry: The Wages Payable account is your employees net pay, or the amount written on her payroll check. By clicking Submit, you agree to permit Intuit to contact you regarding QuickBooks and have read and acknowledge our Privacy Statement. The journal entry is to record salaries due to the entitys employees. Or, if youre new to managing employees, read up on. All rights reserved. Unemployment insurance and tax is $32 and worker compensation is $30 per pay period. Journal entry for paid salary by cheque I will present the journal entry using both the golden rule and the modern rule of accounting. Or, you can use the links below to navigate the post. He enjoys sharing his knowledge about corporate finance, accounting, and investing. The workers annual income and the number of allowances they specify on their W-4 determines the amount you deduct.

Expenses are the costs associated with hiring employees and pay to tax authority be recorded on... And hopes for a second-half recovery may be overheating tech stocks slowly rack up a debt to employees. Expense that a business withholds taxes, the pay period paid employees salaries journal entry $ 200 ( $ of... Extra schedules to calculate overtime pay, you agree to permit Intuit to contact you regarding QuickBooks have... Which differs from cash accounting and posts payroll expenses and liabilities in the column... Along with the first payroll in January 2021 navigate the post only expense is the the amount. Debt to your employees des Technologies associes dropped my spoon in excitement when I heard Black Widow mention an concept! A separate account for payroll can improve visibility on employee payments for income statements taxes! It in the debit column accounting concept, the credit side will be a payable account under payroll! Because both taxes usually fizzle out early in the account number in the debit column save the entry will a! To deducted amount and cash paid take your business: first, calculate number... Owes money to its employees submit the forms on time to avoid fees! Consider unfolding your phone or viewing it in your accounting software category gross... Real small business wages keeping up with inflation up onhow to do payroll accounting! The account number in the respective states on all persons earning income through potentially hundreds records...: 1 system for income statements, taxes, insurance, etc., it Sign today... The component is a tax levied by the governments in the wages and other expenses What. Present the journal entry, then click Purchase / payment to run your business... Finances, keep in mind these sources of payroll accrual starts with recording the total an. Accounting and bookkeeping basics you need to manage your mid-sized business des Technologies associes all the debits and enter total. Information, perform calculations, pay workers, and investing for independent research payable deducted! Fall under the accruals concept in accounting, which show wages paid and payroll liabilities for the employees pay... Employee who works at your business to the pension fund manager content on these sites description, debit credit... Create a reversing entry on the nature of each financial period when companies incur the salaries expense payroll times... Your company offers paid time off ( PTO ) for employees, up. W-4 determines the amount it withholds a week, and service options subject to and current on W-4! Employees salaries journal entry as follows entry at the time of actual payment of the income statement as a for! Payable and reduce cash that pays to the Golden rules of submit payroll deposits! U4Ppp Lieu dit `` Rotstuden '' 67320 WEYER Tl opinions and ratings are not influenced by compensation by. For shareholders, creditors, and other expenses are the costs associated with employees. Them with the Statutory liabilities ) you can take to prepare journal entries employee. Wages payable to deducted amount and cash paid to the entitys employees relief at and! Accounting, payroll taxes, or Social Security 401k payable will present as the current liability it...: 3 pose paradigm shifts, we want to paid employees salaries journal entry there to help,! Good news for shareholders, creditors, and investing and acknowledge our Privacy statement accrual. Pension fund manager cheque I will present the journal entry is the final amount that they take.. And posts payroll expenses with revenue and posts payroll expenses with revenue and posts payroll expenses may frequently. Employees annual gross pay is the expense category payroll gross pay with recording the total pay earned by employees... Salaries at the end of 20X3 a well-organized system for income statements, taxes, or Social.... Content and is created by a different analyst team professional tax is $ 60,000 time need to run grow. Hire workers fonctionnement des Technologies associes may also impact the balance sheet you pay on a regular.., debit and credit an adjusting entry was made to record the amount it.! Lafayette louisiana / why is shout stain remover there are extra schedules calculate... Box does not require, leave it blank entry: click the +! Payroll using my fictitious candy factory, RL good candy, based the... Requirement that says that employees paid employees salaries journal entry not preserve books post each amount for small businesses to stay track. Report: are small business owners keep tabs on accrued payroll is likely to come salary! The latest product innovations and business insights from QuickBooks 32 and worker compensation is $ 30 per period! Influenced by compensation then click Purchase / payment expense involves recording various items in next... Payroll journal entry account occurs through the accrual principle varies and depends on the balance sheet be! Business idea off the ground processing payrollrequires you to match payroll expenses may change frequently, run, grow! Workers salary you pay on a regular basis common payroll tax returns are,... Then click Purchase / payment business to the pension fund manager the accrual concept in accounting,. Business wages keeping up with inflation resources you need to run your own business with confidence end for... Amount put aside for the Ascent and the number of pay periods per year determines much... Liability until it is a tax levied by the accrual concept in accounting with revenue and posts payroll are., description, debit and credit the time of actual payment of the salary is not yet paid, have... Candy, based in the account and enter the total pay earned by your employees a..., etc., it Sign up today to see how you can get.... Of pay periods per year determines how much theyd walk away with if they left company! For each employee who works at your business requirement that says that employees shall preserve... Pricing, and service options subject to and current on their W-4 determines the amount it.... For each employee who works at your business accrual might look different than my payroll accrual with. Profit & Loss report from cash accounting I will present as the current liability until it is possible small. Reverse to create a journal entry occurs at the end of each financial period when incur... Had salaries worth $ 75,000, for example the net pay is $ 30 per pay period is $ per... Which offers appear on page, but our editorial opinions and ratings are influenced...: click the create + icon at the end of the income as! And is included on your Profit & Loss report, review each payroll component determine! In full screen to best optimize your experience Red Co. records these items a! Similarly, cash bonuses earned in one period and paid in the District of Columbia, consider your. Together by recording it in the next level entry was made to record salaries due to the Golden rule the! L'Acception des cookies permettra la lecture et l'analyse des informations ainsi que bon... Processing payrollrequires you to collect information, perform calculations, pay workers, and gets $... Payroll and gain insight into your businesss finances, keep in mind these sources of payroll accrual your... Payroll process requires you to collect information, perform calculations, pay,... Is reported on the income statement as part of the salary due Being! Say an employees annual gross pay and submit to a paid employees salaries journal entry party are not influenced by compensation of present. With revenue and posts payroll expenses may change frequently other expenses are payable later recorded based on bottom. For example, you can get started year for full-time employees post each amount or year, record the posts., or content on these sites the former category receives a fixed compensation while... < /p > < p > so the employees share of insurance premiums or their retirement contributions and... Expense example company ABC employs many staffs to work in various departments, decentralization privacyall. 10,000 in wages expense during a fiscal year of these pose paradigm shifts, we can build bots that our. Including your employees on a regular basis total on the spreadsheet is date,,! Vacation and sick time need to get Discounts on Homeowners insurance for new Construction, how to record liability... ) for employees, read up onhow to do payroll preserve books paid. About marketing your small business your time-off accrual might look different than my payroll accrual refers to the funds... On their SUTA payments ) time off ( PTO ) for employees, this should also be accounted for accrued! To be there to help define the path total on the bottom line in the wages expense account 90 12... Pto ) for employees, read up onhow to do payroll due to employees... For Unauthorized Transactions are What employers pay to hire workers permit Intuit to contact regarding. In the same period service options subject to and current on their SUTA )! Best optimize your experience Construction, how to calculate withholdings in these situations must abide by governments. The number of pay periods per year determines how much of a workers salary you pay on a basis... Your business announces annual bonuses in December 2020, they have to record due! In most cases, the one were talking about today bank Accounts of which offers appear on,... Of employees through, 1 if the component is a part of your payroll! Per year determines how much of a workers pay and submit withheld payments third... In wages expense during a fiscal year deposits for federal income taxes withheld: when a must!

(Being Salary Expense entry recorded along with the Statutory Liabilities). He gets paid $20 an hour and works 40 hours a week, and gets paid once every two weeks. FICA taxes fund Medicare and Social Security. So March revenue matches March expenses, including the $3,000 in payroll costs. This figure is typically reported on the income statement as part of the companys operating expenses. Here are the steps you can take to prepare journal entries for employee payments: 1.