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

The process of recording and keeping track of any financial or non-financial action is known as…

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

See similar textbooks

Similar questions

Ace Computers has 6 employees and operates in Michigan. The Form 940 for the year contains the following information: Part 2: Determine your FUTA tax before adjustments. If any line does NOT apply, leave it blank. 3 Total payments to all employees 4 Payments exempt from FUTA tax- Check all that apply: 5 6 Total of payments made to each employee in excess of $7,000 Subtotal (line 4+ line 5 = line 6) What amount should be entered on line 6? O $26,509.50 O $68,509.50 O $192,869.55 O $95,019.00 4a. Fringe benefits 4b. Group-term life insurance 4c. Retirement/Pension 4d. Dependent care 4 5 68,509.50 4e. Other 26,509.50 3 6 192,869.55
The November 2019 payroll of Walnut Company is $17,500,000, of which $2,150,000 is exempt from Social Security tax because it represented amounts paid to certain employees in excess of $132,900. The amount paid to employees in excess of $7,000 was $16,980,000. Amounts withheld by Walnut were $3,080,000 for federal income taxes, $871,000 for state income taxes, $475,000 in charitable contributions, and $620,000 for 401-K employee contributions. Walnut’s effective state unemployment tax rate is 1.1% and the effective federal unemployment tax rate 0.6%. Prepare the journal entries Walnut should make to reflect its payroll expense and its payroll taxes expense.
Charlotte, Inc. began business on January 1, 2021. Its pretax financial income for the first two years was as follows: 2021 $550,000 2022 590,000 The following items caused the only differences between pretax financial income and taxable income. In 2021, the company terminated a top executive and agreed to 120,000 of severance pay. The amount will be paid $40,000 per year for 2021 - 2023. The 2021 and 2022 payments were made. For financial statement purposes, the $120,000 was expensed in 2021. For tax purposes, the severance pay is deductible as it is paid. In 2021, the company reported depreciation expense in its financial statements of $82,000. Depreciation expense for tax purposes was 134,500. The difference will reverse evenly over the next three years (2022-2024) The tax rate in 2021 is 20% and no tax rate changes have been enacted that affect the years 2022 – 2024. Required: Determine taxable income for 2021…
3) Aira Company reported gross payroll of P600,000 for the month of January. The entity paid the payroll net of the following deductions: Income tax P80,000 20,000 SSS Philhealth 6,000 Pag-ibig/HDMF 8,500 In addition, the entity recognized its additional contributions for the following in relation to January payroll: SSS Philhealth P25,000 7,000 9,000 Pag-ibig/HDMF The net pay and mandatory deductions and contributions were paid on February. What is the total liability related to payroll for the month of January? (Note: TOTAL amount, include withheld amounts)
The payroll of Ivanhoe 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 state unemployment tax) was $406,000. Income taxes in the amount of $76,500 were withheld, as was $9,800 in union dues. The state unemployment tax is 3.5%, but Ivanhoe 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 for Ivanhoe 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. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No…
Since the SUTA rates changes are made at the end of each year, the available 2019 rates were used for FUTA and SUTA. Note: For this textbook edition the rate 0.6% was used for the FUTA tax rate for employers. Example 5-5 Sutcliffe Company had taxable wages totaling $87,500. During the year, the company paid some of its state contributions after the January 31 cutoff of the following year. The penalty for tardiness is shown in the following calculation of the firm's net FUTA tax: Amount of gross FUTA tax ($87,500 × 6.0%) $5,250.00 State taxable wages $87,500 Sutcliffe's SUTA tax rate × 5.4% Sutcliffe's SUTA tax $ 4,725 Breakdown of Sutcliffe's SUTA tax payments: Before 1/31 cutoff—$3,000 × 100% credit (3,000.00) After 1/31 cutoff—$1,725 × 90% credit (1,552.50) Amount of net FUTA tax $ 697.50 If the company had made timely payments of its state contributions, the amount of its net FUTA tax would have been reduced to $525,…
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.
An employer in Cincinnatti, Ohio employs two individuals, whose taxable earnings to date (prior to the current pay period) are $4,900 and $7,700. During the current pay period, these employees earn $2,700 and $1,800, respectively. The applicable SUTA tax rate is 2.5%, and the Ohio SUTA threshold is $9,000. FUTA Tax________ SUTA Tax _____
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?
30. Banner Company had the following payroll data for the year: Gross eamings of employees Employee earnings not subject to Social Security tax Employee earnings not subject to FUTA or SUTA tax Assume the following: FICA tax rate on first $110,100 State Unemployment tax rate Federal Unemployment tax $900,000 100,000 610,000 7.65% (1.45% over $110,100) 5.4% (SUTA) (FUTA) .8% rate Instructions Compute Banner's payroll tax expense for the year. Make a summary journal entry to record the payroll tax expense.
The payroll of Coronado Company for September 2025 is as follows. Total payroll was $434,000, of which $104,000 is exempt from Social Security tax because it represented amounts paid in excess of $142,800 to certain employees. The amount paid to employees in excess of $7.000 (the maximum for both federal and state unemployment taxes) was $363,000. Income taxes in the amount of $72,400 were withheld, as was $9.500 in union dues. The state unemployment tax is 3.5%, but Coronado 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 $142,800 and 1.45% in excess of $142,800. 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. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are…
69. Jackal Company's (a monthly depositor) tax liability (amount withheld from employees' wages for federal income tax and FICA tax plus the company's portion of the FICA tax) for July was $2,780. No deposit was made by the company until August 22, 20-- (7 days late). Determine the following: A. The date by which the deposit should have been made B. The penalty for failure to make timely deposit C. The penalty for failure to fully pay tax when due D. The interest on taxes due and unpaid (assume a 5% interest rate)