Background: M & D Contractors has numerous employees who are paid on a weekly basis. Payroll information for the most recent week ending August 10, 2018 is given below: Total Employee compensation $136,000 FICA social security tax rate 6.2% FICA medicare tax rate 1.45% Federal unemployment tax rate 0.6% State unemployment tax rate 5.4% Federal income tax rate 15.0% Of the total employee compensation, $136,000 is subject to the FICA taxes and $48,500 is subject to the unemployment taxes. Other expenses include health insurance costs of $60,000 (spilt 90% employer, 10% employee), charitable contributions made to the United Way of $12,500 (100% employee), and retirement benefits paid by the employer equal to 2% of the gross salaries. Assignment: 1) Using the General Journal tab, click Add Transaction to journalize each transaction. Click Post Transaction once you complete the entry, then repeat these steps for each transaction. 2) Click the Reports tab and review the results of recording these transactions on the General Ledger. 3) Click Submit Work when complete. Transactions: 08/10/2018 Recorded Salaries and Wages Expense accrual for the August 10 payroll. Employees will be paid on August 13. Prepare a compound entry for this transaction. 08/10/2018 Recorded payroll taxes for the August 10 payroll. Prepare a compound entry for this transaction. 08/10/2018 Recorded employee benefits expense for the August 10 payroll. Prepare a compound entry for this transaction. 08/13/2018 Paid employees from the August 10 payroll. 08/15/2018 Paid all withholdings and employer payroll taxes related to the August 10 payroll. Prepare a compound entry for this transaction.
Background:
M & D Contractors has numerous employees who are paid on a weekly basis. Payroll information for the most recent week ending August 10, 2018 is given below:
Total Employee compensation $136,000
FICA social security tax rate 6.2%
FICA medicare tax rate 1.45%
Federal
State unemployment tax rate 5.4%
Federal income tax rate 15.0%
Of the total employee compensation, $136,000 is subject to the FICA taxes and $48,500 is subject to the unemployment taxes. Other expenses include health insurance costs of $60,000 (spilt 90% employer, 10% employee), charitable contributions made to the United Way of $12,500 (100% employee), and retirement benefits paid by the employer equal to 2% of the gross salaries.
Assignment:
1) Using the General Journal tab, click Add Transaction to journalize each transaction. Click
2) Click the Reports tab and review the results of recording these transactions on the General Ledger.
3) Click Submit Work when complete.
Transactions:
08/10/2018
Recorded Salaries and Wages Expense accrual for the August 10 payroll. Employees will be paid on August 13. Prepare a compound entry for this transaction.
08/10/2018
Recorded payroll taxes for the August 10 payroll. Prepare a compound entry for this transaction.
08/10/2018
Recorded employee benefits expense for the August 10 payroll. Prepare a compound entry for this transaction.
08/13/2018
Paid employees from the August 10 payroll.
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