Beach Vacations pays salaries and wages on the last day of each month. Payments made on December 31, 20X1, for amounts incurre during December are shown below. Cumulative amounts paid prior to the December 31 payroll for the persons named are also shown a. Francis Fisher, president, gross monthly salary, $11,910; gross earnings paid prior to December 31, $131,010. b. Sandy Swartz, vice president, gross monthly salary, $11,300; gross earnings paid prior to December 31, $113,000. c. Juan Rios, independent accountant who audits the company's accounts and performs certain consulting services, $11,060; gross amount paid prior to December 31, $27,650. d. Harry House, treasurer, gross monthly salary, $5,960; gross earnings paid prior to December 31, $65,560. e. Payment to Daily Security Services for Eddie Martin, a security guard who is on duty on Saturdays and Sundays, $1,230; amount paid to Daily Security Services prior to December 31, $12,300. Required: 1. Assume a 1.45 percent Medicare tax rate on all salaries and wages earned by the employee during the year. Assume a 6.2 percent social security rate on the first $142,800 earned by the employee during the year and prepare a schedule showing the following information: a. Each employee's cumulative earnings prior to December 31. b. Each employee's gross earnings for December. c. The amounts to be withheld for each payroll tax from each employee's earnings (employee income tax withholdings for Fisher are $3,325; for Swartz, $2,820; and for House, $990). d. The net amount due each employee. e. The total gross earnings, the total of each payroll tax deduction, and the total net amount payable to employees. 2. Record the general journal entry for the company's payroll on December 31. 3. Record the general journal entry for payments to employees on December 31. Analyze: What is the balance of the Salaries Payable account after all payroll entries have been posted for the month?
Beach Vacations pays salaries and wages on the last day of each month. Payments made on December 31, 20X1, for amounts incurre during December are shown below. Cumulative amounts paid prior to the December 31 payroll for the persons named are also shown a. Francis Fisher, president, gross monthly salary, $11,910; gross earnings paid prior to December 31, $131,010. b. Sandy Swartz, vice president, gross monthly salary, $11,300; gross earnings paid prior to December 31, $113,000. c. Juan Rios, independent accountant who audits the company's accounts and performs certain consulting services, $11,060; gross amount paid prior to December 31, $27,650. d. Harry House, treasurer, gross monthly salary, $5,960; gross earnings paid prior to December 31, $65,560. e. Payment to Daily Security Services for Eddie Martin, a security guard who is on duty on Saturdays and Sundays, $1,230; amount paid to Daily Security Services prior to December 31, $12,300. Required: 1. Assume a 1.45 percent Medicare tax rate on all salaries and wages earned by the employee during the year. Assume a 6.2 percent social security rate on the first $142,800 earned by the employee during the year and prepare a schedule showing the following information: a. Each employee's cumulative earnings prior to December 31. b. Each employee's gross earnings for December. c. The amounts to be withheld for each payroll tax from each employee's earnings (employee income tax withholdings for Fisher are $3,325; for Swartz, $2,820; and for House, $990). d. The net amount due each employee. e. The total gross earnings, the total of each payroll tax deduction, and the total net amount payable to employees. 2. Record the general journal entry for the company's payroll on December 31. 3. Record the general journal entry for payments to employees on December 31. Analyze: What is the balance of the Salaries Payable account after all payroll entries have been posted for the month?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Beach Vacations pays salaries and wages on the last day of each month. Payments made on December 31, 20X1, for amounts incurred
during December are shown below. Cumulative amounts paid prior to the December 31 payroll for the persons named are also shown.
a. Francis Fisher, president, gross monthly salary, $11,910; gross earnings paid prior to December 31, $131,010.
b. Sandy Swartz, vice president, gross monthly salary, $11,300; gross earnings paid prior to December 31, $113,000.
c. Juan Rios, independent accountant who audits the company's accounts and performs certain consulting services, $11,060; gross
amount paid prior to December 31, $27,650.
d. Harry House, treasurer, gross monthly salary, $5,960; gross earnings paid prior to December 31, $65,560.
e. Payment to Daily Security Services for Eddie Martin, a security guard who is on duty on Saturdays and Sundays, $1,230; amount
paid to Daily Security Services prior to December 31, $12,300.
Required:
1. Assume a 1.45 percent Medicare tax rate on all salaries and wages earned by the employee during the year. Assume a 6.2
percent social security rate on the first $142,800 earned by the employee during the year and prepare a schedule showing the
following information:
a. Each employee's cumulative earnings prior to December 31.
b. Each employee's gross earnings for December.
c. The amounts to be withheld for each payroll tax from each employee's earnings (employee income tax withholdings for
Fisher are $3,325; for Swartz, $2,820; and for House, $990).
d. The net amount due each employee.
e. The total gross earnings, the total of each payroll tax deduction, and the total net amount payable to employees.
2. Record the general journal entry for the company's payroll on December 31.
3. Record the general journal entry for payments to employees on December 31.
Analyze:
What is the balance of the Salaries Payable account after all payroll entries have been posted for the month?
Complete this question by entering your answers in the tabs below.
Req 1
Req 2 and 3
Analyze
Assume a 6.2 percent social security rate on the first $142,800 earned by the employee during the year and prepare a schedule showing
the following information:
Note: Round your intermediate calculations and final answers to 2 decimal places.
Totals
Employee
Employee
Cumulative
Earnings
Monthly Pay Social Security
Medicare
Income Tax
With Holding
Net Pay
<Rag 1
Req 2 and 3 >
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education