Assume the following data for Nest Home Appliance Repair for the payroll quarter ended March 31. . . . Gross earnings Employee FICA taxes Federal income tax State income tax Number of employees this quarter: $300,500.00 22,988.25 60,100.00 6,009.00 Nest is subject to the following rates: FICA 7.65% (the 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of 1.45% on all salaries and wages), state unemployment 5.4% up to $7,000, and federal unemployment 0.6% up to $7,000. No employee reached the limit for FICA taxes, and all employees reached the limit for unemployment taxes in the first quarter. Date Account Titles and Explanation 30 Prepare the journal entry to record payment of employer taxes, assuming all taxes were paid on April 15. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Apr. 15 Debit III Credit 111

Assume the following data for Nest Home Appliance Repair for the payroll quarter ended March 31. . . . Gross earnings Employee FICA taxes Federal income tax State income tax Number of employees this quarter: $300,500.00 22,988.25 60,100.00 6,009.00 Nest is subject to the following rates: FICA 7.65% (the 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of 1.45% on all salaries and wages), state unemployment 5.4% up to $7,000, and federal unemployment 0.6% up to $7,000. No employee reached the limit for FICA taxes, and all employees reached the limit for unemployment taxes in the first quarter. Date Account Titles and Explanation 30 Prepare the journal entry to record payment of employer taxes, assuming all taxes were paid on April 15. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Apr. 15 Debit III Credit 111

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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On September 30, Cody Company's selected account balances are as follows: Employees' Federal Income Tax Payable $4,738.00 FICA Social Security Tax Payable (employer, $2,110.80; employee, $2,110.80) 4,221.60 FICA Medicare Tax Payable (employer, $493.66; employee, $493.66) 987.32 State Unemployment Tax Payable 2,200.00 (Some employees have Federal Unemployment Tax Payable 570.00 reached the limit.) Required: In general journal form, prepare the entries to record the following: If an amount box does not require an entry, enter '0' or leave it blank. Oct. 15 Payment of liabilities for FICA taxes and the federal income tax. 31 Payment of liability for state unemployment tax. 31 Payment of liability for federal unemployment tax.
4. The payroll register of Clapton Co. indicates $11,340 of social security withheld and $2,835 of Medicare tax withheld on total salaries of $189,000 for the period. Earnings of $19,000 are subject to state and federal unemployment compensation taxes at the federal rate of 0.6% and the state rate of 5.4%. Provide the journal entry to record the payroll tax expense for the period.
Calculate the net pay. The balance before this weekly payroll is $90 below maximum as related to cumulative earnings in calculating Social Security. Assume a tax rate of 6.2% for Social Security on $142,800 and 1.45% for Medicare. status = single Gross= 900 calculate: FIT, social security, Medicare, and Net pay
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Am. 111.
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Journalize Payroll Tax The payroll register of Patel Engineering Co. indicates $1,698 of social security withheld and $424.50 of Medicare tax withheld on total salaries of $28,300 for the period. Earnings of $8,200 are subject to state and federal unemployment compensation taxes at the federal rate of 0.6% and the state rate of 5.4%. Provide the journal entry to record the payroll tax expense for the period. If an amount box does not require an entry, leave it blank. Round to two decimal places. Payroll Tax Expense v Social Security Tax Payable v Medicare Tax Payable v State Unemployment Tax Payable v Federal Unemployment Tax Payable v DEFER
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H1. Account
For all payroll calculations, use the following tax rates and round amounts to the nearest cent Employee: OASDI: 6.2% on first $118,500 earned; Medicare 1.45% up to $200,000, 2.35% on earnings above $200,000. Employer: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. Determining current portion of long-term note payable On January 1 Irving Company purchased equipment of $280,000 with a long-term note payable. 1 he debt is payable in annual installments of $56,000 due on December 31 of each year. At the date of purchase, how will Irving Company report the note payable?
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