The payroll of Buffalo Company for September 2019 is as follows.Total payroll was $468,000, of which $104,000 is exempt from Social Security tax because it represented amounts paid in excess of$128,400 to certain employees. The amount paid to employees in excess of $7,000 (the maximum for both federal and stateunemployment tax) was $406,000. Income taxes in the amount of $76,500 were withheld, as was $9,800 in union dues. The stateunemployment tax is 3.5%, but Buffalo Company is allowed a credit of 2.3% by the state for its unemployment experience. Also,assume that the current FICA tax is 7.65% on an employee's wages to $128,400 and 1.45% in excess of $128,400. No employee forBuffalo makes more than $135,000. The federal unemployment tax rate is 0.8% after state credit.Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately. (Roundanswers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.Creditaccount titles are automatically indented when amount is entered. Do not indent manually.)Account Titles and ExplanationDebitCreditSalaries and Wages Expense468000Withholding Taxes Payable76500FICA Taxes Payable29354Union Dues Payable9800Cash352346(To record wages and salaries paid)Payroll Tax Expense30594FUTA Taxes Payable29354SUTA Taxes Payable496to search Salaries and Wages Expense468000Withholding Taxes Payable76500FICA Taxes Payable29354Union Dues Payable9800Cash352346(To record wages and salaries paid)Payroll Tax Expense30594FUTA Taxes Payable29354SUTA Taxes Payable496FICA Taxes Payable744(To record employer payroll taxes)eTextbook and MediaList of Accounts

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am $128,400 to certain employees. The amount paid to employees in excess of $7,000 (the maximum for both fe anemployment tax) was $406,000. Income taxes in the amount of $76,500 were withheld, as was $9,800 in u unemployment tax is 3.5%, but Buffalo Company is allowed a credit of 2.3% by the state for its unemploymen assume that the current FICA tax is 7.65% on an employee's wages to $128,400 and 1.45% in excess of $128, Buffalo makes more than $135,000. The federal unemployment tax rate is 0.8% after state credit. Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are record answers to O decimal places, eg. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for account titles are automatically indented when amount is entered. Do not indent manually.)

am $128,400 to certain employees. The amount paid to employees in excess of $7,000 (the maximum for both fe anemployment tax) was $406,000. Income taxes in the amount of $76,500 were withheld, as was $9,800 in u unemployment tax is 3.5%, but Buffalo Company is allowed a credit of 2.3% by the state for its unemploymen assume that the current FICA tax is 7.65% on an employee's wages to $128,400 and 1.45% in excess of $128, Buffalo makes more than $135,000. The federal unemployment tax rate is 0.8% after state credit. Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are record answers to O decimal places, eg. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for account titles are automatically indented when amount is entered. Do not indent manually.)

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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The company’s trial balance is listed below. What are the journal entries that should be recorded for the Year 2 ASC 740 provision? There are two of them. Assume a tax rate of 40% and there are no state or foreign taxes to consider. The company is an accrual basis taxpayer. All work must be shown in a clear and organized format. Year 1 Year 2 Cash 19,400 48500 A/R 30,000 90000 Allowance for Bad Debt -5,000 -25000 Prepaid Supplies 500 1500 DTA (DTL) 2000 2000 A/P -15000 -45000 Income Tax Payable -14000 - R/E - -17900 Revenue -50000 -100000 Political Contributions 100 900 Wages 15000 25000 Bad Debt 5000 20000 Income Tax Expense 12000 - 0 0
14. On March 21st Jamukha recorded salaries owed to employees and payroll taxes. Employee's gross salaries were $8,300. FICA tax was withheld at a rate of 7.65%. Federal income taxes (FIT) of $1,500 were withheld, and state income taxes (SIT) of $600 were withheld. The federal unemployment tax (FUTA) rate was 1%, and the state unemployment tax (SUTA) rate was 3.25% No cash has been paid yet, so record all the amounts due in the appropriate payable accounts.
Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,500 each week. Additional tax information includes: FICA tax—OASDI 6.2% on first $128,400 FICA tax—HI 1.45% on total pay Federal income tax $232.00 per pay State income tax 22% of the federal income tax withholding Federal unemployment tax 0.6% on first $7,000 State unemployment tax 0.05% on first $14,000 Additional payroll deductions include: 401(k) plan 3% per pay Child support garnishment $100 per pay Health insurance premium $95 per pay Record the payroll entry and payroll tax entry for the pay of the week ended June 7 (his year-to-date pay is $31,500). If an amount box does not require an entry, leave it blank or enter "0". Round your answers to the nearest cent. Account Debit Credit Payment of wages…
Federal income tax is withheld from employee earnings: only if your employer has over 10 employees only on the first $7,000 you earn O only if you earn more than $40,000 a year O in all 50 states
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Ivanhoe pays a weekly payroll of $250000 that includes federal income taxes withheld of $38100, FICA taxes withheld of $23970, and 401(k) withholdings of $26500. What is the effect on assets and liabilities from this transaction? Assets decrease $187930 and liabilities decrease $62070. Assets decrease $187930 and liabilities increase $62070. Assets decrease $161430 and liabilities increase $88570. Assets decrease $250000 and liabilities do not change.
Based on a more likely than not (MLTN) basis: Co. should only have claimed federal R&D credit of $8,000 Co. identified a bonus accrual at the end of YrX1 of $20,000 that should not have been deducted for tax purposes. This bonus accrual was new this year. For federal and state purposes, each jurisdiction assesses a 10% penalty on underpayment of taxes, and simple interest of 5% per year. g) What are the amounts of the unrecognized tax benefits? h) What are the penalties and interest resulting from these UTBs at 12/31/YrX1? i) What are the journal entries to book the effects of the unrecognized tax benefits? j) What is the total provision for income tax on a MLTN basis?
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Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,700 each week. Additional tax information includes: FICA tax—OASDI 6.2% on first $137,700 FICA tax—HI 1.45% on total pay Federal income tax $255.00 per pay State income tax 22% of the federal income tax withholding Federal unemployment tax 0.6% on first $7,000 State unemployment tax 0.05% on first $14,000 Additional payroll deductions include: 401(k) plan 3% per pay Child support garnishment $110 per pay Health insurance premium $95 per pay Here is what I need help with: Record the payroll entry and payroll tax entry for the pay of the week ended June 7 (his year-to-date pay is $35,700). If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. Account Debit Credit Payment of wages fill in the blank 35542201cfaf02a_2 fill in the blank 35542201cfaf02a_3 fill in the…
Erie Corporation reported taxable income of $2,200,000 in 20X3 before any deduction for any payment to its sole shareholder and employee, LaBron Cleveland. Erie paid a bonus of $200,000 to LaBron at year-end. Erie Corporation is subject to a flat-rate tax of 21%. The bonus meets the requirements to be "reasonable" and is therefore deductible by Erie. LaBron is subject to a marginal tax rate of 35% on the bonus. What is the total federal income tax imposed on the corporate income earned by Erie and paid to LaBron as a bonus?