Assume that the payroll is subject to an employer's Social Security tax of 6.2 percent on the first $118,500 and a Medicare tax of 1.45 percent on all earnings. Also assume that the federal unemployment tax is 0.6 percent, and that the state unemployment tax is 5.4 percent of the first $7,000. Give the entry in general journal form to record the payroll tax expense. If an amount box does not require an entry, leave it blank. If required, round your intermediate calculations and final answers to the nearest cent and use the rounded answers in subsequent computations.
Assume that the payroll is subject to an employer's Social Security tax of 6.2 percent on the first $118,500 and a Medicare tax of 1.45 percent on all earnings. Also assume that the federal unemployment tax is 0.6 percent, and that the state unemployment tax is 5.4 percent of the first $7,000. Give the entry in general journal form to record the payroll tax expense. If an amount box does not require an entry, leave it blank. If required, round your intermediate calculations and final answers to the nearest cent and use the rounded answers in subsequent computations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Signature Company's partial payroll register for the week ended January 7 is as follows:
| TAXABLE EARNINGS | ||||||||||||
NAME |
BEGINNING CUMULATIVE EARNINGS | TOTAL EARNINGS |
ENDING CUMULATIVE EARNINGS | SOCIAL SECURITY |
MEDICARE |
|||||||
| Barney, R. S. | ----- | 1,932.00 | 1,932.00 | 1,932.00 | 1,932.00 | 1,932.00 | ||||||
| Fisk, M. C. | ----- | 567.00 | 567.00 | 567.00 | 567.00 | 567.00 | ||||||
| Hayes, W. O. | ----- | 483.00 | 483.00 | 483.00 | 483.00 | 483.00 | ||||||
| Lee, L. B. | ----- | 679.00 | 679.00 | 679.00 | 679.00 | 679.00 | ||||||
| Parks, S. J | ----- | 578.00 | 578.00 | 578.00 | 578.00 | 578.00 | ||||||
| Tempy, E. B. | ----- | 546.00 | 546.00 | 546.00 | 546.00 | 546.00 | ||||||
| 4,785.00 | 4,785.00 | 4,785.00 | 4,785.00 | 4,785.00 |
Assume that the payroll is subject to an employer's Social Security tax of 6.2 percent on the first $118,500 and a Medicare tax of 1.45 percent on all earnings. Also assume that the federal unemployment tax is 0.6 percent, and that the state unemployment tax is 5.4 percent of the first $7,000.
Give the entry in general journal form to record the payroll tax expense. If an amount box does not require an entry, leave it blank. If required, round your intermediate calculations and final answers to the nearest cent and use the rounded answers in subsequent computations.
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