3. Tesla, Inc. pays employees at the end of each month. Payroll information is listed below forJanuary, the first month of the fiscal year. Assume that none of the employees exceeds the Federalunemployment tax maximum salary of $7,000 in January.Salaries$985,000Federal and state income taxes withheld184,000Federal unemployment tax rate0.80%State unemployment tax rate (after FUTA deduction)3.00%Social Security (FICA) tax rate7.65%Record employees salaries expense and payroll tax expense for the January pay period.Account NameDebitCreditEmployees Salaries exp.[no1][no1][no1]Employer Payroll tax[no1][no1][no1]

Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Answered: 3. Tesla, Inc. pays employees at the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Nov. 30: Journalized the monthly payroll for November, based on the following data. Description entries available are: Cash, Medicare Tax Payable, No Entry Required, Sales Salaries Expenses, Sales Salaries Payable. Salaries Deductions Sales salaries $135,000 Federal income tax withheld $39,266 Office salaries 77,250 Social security tax withheld 12,735 $212,250 Medicare tax withheld 3,184 Unemployment tax rates: State unemployment 5.4% Federal unemployment 0.6% Amount subject to unemployment taxes: State unemployment $5,000 Federal unemployment 5,000 Nov. 30: Journalized the employer's payroll taxes on the payroll. Description Debit Credit Description Debit Credit Dec. 14: Journalized the payment of the September 15 note at maturity. Description Debit Credit Dec. 31: The pension cost for…
The payroll register for D. Salah Company for the week ended May 18 indicated the following: Line Item Description Amount Salaries $711,000 Federal income tax withheld 142,200 The salaries were all subject to the 6.0% social security tax and the 1.5% Medicare tax. In addition, state and federal unemployment taxes were computed at the rate of 5.4% and 0.8%, respectively, on $14,000 of salaries. Assume the company runs all paychecks through Salaries Payable. If an amount box does not require an entry, leave it blank. Question Content Area a. Journalize the entry to record the payroll for the week of May 18. Date Account Debit Credit May 18 Feedback Area Feedback Question Content Area b. Journalize the entry to record the payroll tax expense incurred for the week of May 18. Date Account Debit Credit May 18
. Robart Services pays its employees monthly. The payroll information listed below is for January 2021, the first month of BMS's fiscal year. Assume none of the employees' earnings reached $7,000 during the month. Salaries $80,000 Federal income taxes to be withheld 16,000 Federal unemployment tax rate (FUTA) 0.80% State unemployment tax rate (after FUTA deduction) 5.40% Social security tax rate 6.2% Medicare tax rate 1.45% The journal entry to record payroll for the January 2021 pay period will include a debit to payroll tax expense of: A. $6,120. B. $4,960. C. $57,880. D$11,080
Assuming no employees are subject to ceilings for their earnings, Harris Company has the following information for the pay period of January 15-31. Gross payroll $16,376 Federal income tax withheld $2,472 Social security rate 6% Federal unemployment tax rate 0.8% Medicare rate 1.5% State unemployment tax rate 5.4% Salaries Payable would be recorded in the amount of Oa. $11,660.49 Ob. $12,675.80 Oc. $16,376.00 Od. $12,888.69 ( Previous
1 ences Piperel Lake Resort's four employees are paid monthly. Assume an income tax rate of 20%. Required: Complete the payroll register below for the month ended January 31, 2021. (Do not round intermediate values. Round the final answers to 2 decimal places.) Click here to view the CPP Tables for 2021. Click here to view the El Tables for 2021. Employee Wynn, L Short, M. Pearl, P Quincy, B Totals $ $ Gross Pay 2,000.00 1,750.00 1,950.00 1,675.00 7,375.00 El Premium Income Taxes Medical Ins. $ Deductions $ 65.00 65.00 65.00 65.00 260.00 A CPP $ $ United Way 40.00 100.00 0.00 50.00 190.00 Total Deductions Pay Net Pay Distribution Office Salaries 1,750.00 Guide Salaries S 2.000.00 1,950.00 1,675.00
A company's payroll for the month ended January 31 is summarized as follows: Total wages Federal income tax withheld FICA taxes (employee portion withheld) FICA taxes (employer portion) $10,000 $1,200 $700 $700 The company remits payroll taxes on the 15th of the following month. In its financial statements for the month ended January 31, what amounts should the company report as total payroll tax liability and as payroll tax expense? O Payroll tax liability: $1,400; Payroll tax expense: $700 O Payroll tax liability: $1,900; Payroll tax expense: $1,400 O Payroll tax liability: $2,600; Payroll tax expense: $700 O Payroll tax liability: $1,900; Payroll tax expense: $700 O Payroll tax liability: $1,200; Payroll tax expense: $1,400
• X Corp. pays its employees monthly. The payroll information for Employee Barney listed below is for January, 2021, the first month of X's fiscal year. Salary: $40,000 Fed. Income Tax Withheld: $8,000 Federal and State Unemployment Tax: 6% Social Security Tax: 6.2% Medicare Tax: 1.45% Payroll tax expense related to this employee will be: O $7,140 $47,140 O $40,000 O $5,460
Midwest Shipping pays employees at the end of each month. Payroll information is listed below for January, the first month of the fiscal year. Assume that none of the employees exceeds the federal unemployment tax maximum salary of $7,000 in January. Salaries Federal and state income taxes withheld Federal unemployment tax rate State unemployment tax rate (after FUTA deduction) Social Security (FICA) tax rate $900,000 120,000 0.80% 5.40% 7.65% Required: Record salaries expense and payroll tax expense for the January pay period. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record the employer payroll taxes. Note: Enter debits before credits.
Airline Temporary Services (ATS) pays employees monthly. Payroll information is listed below for January, the first month of ATS's fiscal year. Assume that none of the employees exceeds the federal unemployment tax maximum salary of $7,000 in January. Salaries expense Federal and state income tax withheld Federal unemployment tax rate State unemployment tax rate (after FUTA deduction) Social Security (FICA) tax rate No Required: Record salaries expense and payroll tax expense for the January pay period. (If no entry is required for a particular transaction, select "No Journal Entry Required" In the first account fleld.) 1 2 Date January 31 January 31 Salaries Expense Employee Income Tax Payable FICA Tax Payable Salaries Payable $410,000 82,000 Answer is complete but not entirely correct. General Journal Payroll Tax Expense FICA Tax Payable 0.80% 5.40% 7.65% Unemployment Tax Payable Unemployment Tax Payable >> >* Debit 410,000✔ 56,785 Credit 82,000 31,385 296,635 31,365 3,280 x 22,140
Giblin’s Goodies pays employees weekly on Fridays. However, the company notices that March 31 is a Wednesday, and the pay period will end on April 2. The payroll data for March 29-31 is as follows Gross pay: $8,000.00 Federal income tax: $920.00 Social Security tax: $496.00 Medicare tax: $116.00 State income tax: $160.00 Federal Unemployment Tax: $48.00 State Unemployment Tax: $432.00 REQUIRED:Give the adjusting entry in the General Journal to recognize the employee and employer share of the payroll for March 29–31. The date of the entry is March 31. Then record the journal entry to reverse the adjustment on April 1, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places.) Record the adjusting Journal Entry for employees' share of payroll accrual. Date General Journal Debit Credit
Greensburg Inc. had the following payroll for October 2020: Employee Wages $90,000 Federal income tax withheld 23,000 FICA 5,000 Health premiums deducted 3,000 Salaries (included above) subject federal unemployment taxes 90,000 Salaries (included above) subject to state unemployment taxes 90,000 REQUIRED: Present journal entries on October 31, 2020 to record: Accrual of the monthly payroll. Accrual of the employer's payroll tax. (Assume that the employer matches health premiums and the federal unemployment tax is 0.8%, and the state unemployment tax is 5.4%.)
1)Chester Company reported payroll for the month of January 2022 as follows: Total Wages Income taxes withheld 500,000 60,000 All wages paid were subject to SSS. The SSS tax rates were 7% each for employee and employer. Chester remits payroll taxes on the 15" of the following month. In the financial statements for the month ended January 31, 2022, what amount should be reported respectively as total payroll tax liability and payroll tax expense? C. 95,000 and 35,000 D. 130,000 and 35,000 A. 60,000 and 70,000 B. 95,000 and 70,000

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