A company that has reported an income of sh 2,400,000 computed without subtracting either the bonus or corporation taxes. The bonus is to be based on income after taxes but before deducting bonuses. The corporation tax rate is 30% and the bonus payable is 10%. Required; Calculate the bonus and tax payable Show the double entry in respect of bonus and income taxes payable.

Q: On 7/1, the beginning balance in sales tax payable is a $50,000 credit. On 7/15, a $45,000 cash…

A: Liability means the amount which is to be paid to an outsider . When any liability is paid in cash ,…

Q: Shu Company located in Arkansas had FUTA taxable wages of $130,000 and SUTA taxable wages (on first…

A: Formula: Total Unemployment taxes = Net FUTA tax + Net SUTA tax

Q: From the following information, calculate the payroll tax expense for Bowling Company for the…

A: Answer:- Payroll taxes:- All taxes pertaining to a person's salary, wage, bonus, commission and tips…

Q: According to a summary of the payroll of Guthrie Co., $600,000 was subject to the 6.0% social…

A: Payroll Tax refers to those taxes that employers withhold from the wages or salaries of the…

Q: a. $950,000

A: To calculate the tax refundable for the company, we need to first calculate the total tax liability…

Q: Use the information for the next four (4) questions. QWERTY Company has an agreement to pay the…

A: Income after tax before bonus = Income before bonus and before tax x (1-0.30) =  P7,875,000 x 0.70 =…

Q: P a y t o n company payroll for the year is $747,930. Of this amount, $469,230 is for wages paid e x…

A: Total unemployment taxes=Net Futa tax+Net suta tax

Q: 1.How much is the bonus, assuming bonus is a certain percent of the income before bonus and before…

A: Income after bonus and income tax. Income after bonus and income tax is the amount of cash paid to…

Q: KA  Payroll Related Accounting       Assume a weekly payroll of $30,000 entirely subject to…

A: Assume a weekly payroll of $30,000 entirely subject to F.I.C.A. and Medicare (7.65%) taxes, with…

Q: If the current year tax rate is 20% and a company estimates next year's tax rate will be 25%, income…

A: For each financial year, the businesses need to pay income taxes, for which they need to make…

Q: According to a summary of the payroll of PJW Co., $700,000 in earnings were subject to the 7.7% FICA…

A: Payroll taxes refers to the taxes that are applicable on the payroll expense of the entity. It…

Q: Omega Limited has shown a provision for employee benefits balance of $6,000 under current…

A: Generally there are two times of differences that arise in case of accounting that include the…

Q: Cowen Company began its operations in August of the current year. During August and September, the…

A: FUTA termed as Federal Unemployment Tax Act which is law or tax that is imposed on the federal…

Q: The following are data available for the month of September 2021 of Saint James Corp.…

A: A. Accrued payroll = Gross earnings - Total deductions = P8500000 - (425000 + 85000 + 85000 +…

Q: From the following information, calculate the payroll tax expense for Gray Company for the payroll…

A: Since cumulative payroll for the current payroll period is less than $127,700, all payroll for…

Q: Hayden Company expects to pay a 7% bonus on net income after deducting the bonus. Assume the company…

A: Journal entry is the first step in the accounting. It is recorded to keep accounting transaction in…

Q: 3b. A company made an additional (incremental) income of $10,000 during the last week of the year.…

A: Tax can be defined as an amount paid to the government on the income. It is a compulsory…

Q: 6. Journalize the payroll entries from the following information: Salaries $120,000; Income Tax…

A: In the given question we are required to journalize the given transaction. The journal entry for the…

Q: Runner Company incurred the following amounts for their most recent pay period for employee gross…

A: Payroll taxes are taxes imposed on employers or employees, and are usually calculated as a…

Q: Natural Company has an agreement to pay the sales manager a bonus of 10% of the entity's earnings.…

A: The bonus can be paid to manager on different conditions as before bonus or after bonus.

Q: You have calculated the adjusted profit for the company to be $2,000,000. Capital Allowance was…

A: Here's the step-by-step calculation and why the other options are incorrect:Step 1: Calculate Tax…

Q: A company wants to pay a bonus to an employee so that the net pay is $10,000. The federal income tax…

A: Federal income tax, State income tax and FICA tax are to be deducted from the bonus paid.     We…

Q: A. Ferrero Company has an agreement to pay its sales manager a bonus of 10% of the income after…

A: Let assume the income after bonus and tax = X Then the manager bonus will be = X * 0.10 = 0.1X The…

Q: PP Company has an incentive compensation plan under which a branch manager receives 10% of the…

A: A bonus is a monetary reward that is more than the recipient would typically anticipate receiving.…

Q: Steven Ray has cumulative earnings of $6,580 and earned $840 during the current payroll period. If…

A: SUTA taxes means state unemployment taxes. For these taxes, employer needs to withhold amount from…

Q: You have calculated the adjusted profit for the company to be $2,000,000.  Capital allowance was…

A: Here's the breakdown of the tax calculation and why the correct answer is (b) $500,000:Taxable…

Q: Century Company has a bonus agreement which provides that the general manager shall receive an…

A: Income after bonus and tax :— It is the difference between income before tax and income tax expense.…

Q: ABC Co. distributes annual bonus to its sales manager. The company reported P2 million profit for…

A: The net income after tax is calculated as follows: Net income after tax = Net income before income…

Q: After the Yukon Corporation paid its employees on May 15, 20X1, and recorded the corporation's share…

A: The payroll taxes refer to the taxes paid by the employees and employer on the salary, wages, and…

Q: From the following information, calculate the payroll tax expense for Bowling Company for the…

A: Since cumulative payroll for the current payroll period is less than $127,700, all payroll for…

Q: The payroll register of Sara Company indicates $5,850 of social security tax withheld and $1,600 of…

A: Introduction: Payroll tax expense account is indeed the holding account used to keep track of the…

Q: Donner Company began its operations in September of the current year. During September, the company…

A: Solution:- a)Is Donner Company liable for FUTA tax this year as follows:- The Federal Unemployment…

Q: The following are details to calculate tax expense, tax payable and deferred taxes: Descriptions 1…

A: Deferred tax is calculated for the book adjustment to know the amount of tax adjustment and the…

Q: Use the information for the next four (4) questions.ZXCVBNM Company has an agreement to pay the…

A: Income after tax = Income before bonus and before tax x (1-0.30) =  P7,875,000 x 0.70 = P5,512,500

Q: Enid paid the gross payroll of P15,000. The deductions are: withholding tax, P1,000 and SSS, P500.…

A: Employers pay the net payroll amount to the employees that are calculated by deducting withholding…

Q: ABC Co. distributes annual bonus to its sales manager. The company reported 2 million profit for…

A: The net profit after tax is calculated as difference between net income and income tax.

Q: Pillar has an annual payroll of $135,000. In addition, the company incurs payroll tax expense of 8%…

A: Income statement is the financial statement which is prepared to know the profitability of the…

Q: JIMIN Company has an agreement to pay the executive officers a bonus of 5% of the entity’s earnings.…

A: The bonus is computed as follows