Cullumber Company has the following data for the weekly payroll ending January 31. Hours Employee M T L Helton 8 8 R. Kenseth 8 8 8 D. Tavaras 9 10 8 8 8 10 8 10 8 S 3 3 0 Hourly Rate Federal Income Tax Withholding Health Insurance $10 12 15 $34 37 50 $10 25 25 Employees are paid 1% times the regular hourly rate for all hours worked in excess of 40 hours per week FICA taxes are 7.65% (the 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% c varies and wages up to $128.400 and the Medicare tax rate of 145% on all salaries and wages). Cullumber Company is subject to 54% state unemployment taxes and 0.6% federal unemployment taxes on the first $7,000 of gross earnings
Cullumber Company has the following data for the weekly payroll ending January 31. Hours Employee M T L Helton 8 8 R. Kenseth 8 8 8 D. Tavaras 9 10 8 8 8 10 8 10 8 S 3 3 0 Hourly Rate Federal Income Tax Withholding Health Insurance $10 12 15 $34 37 50 $10 25 25 Employees are paid 1% times the regular hourly rate for all hours worked in excess of 40 hours per week FICA taxes are 7.65% (the 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% c varies and wages up to $128.400 and the Medicare tax rate of 145% on all salaries and wages). Cullumber Company is subject to 54% state unemployment taxes and 0.6% federal unemployment taxes on the first $7,000 of gross earnings
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cullumber Company has the following data for the weekly payroll ending January 31
Employee M T
L Helton
8
8
R. Kenseth
8
D. Tavaras
9
8
10
Hours
W
Jan 31
10
8
8
T F
8
8
8
10
8
9
5
3
3
0
Date Account Titles and Explanation
Hourly Rate
$10
12
15
Federal Income Tax Withholding
$34
37
50
Health Insurance
Debit
10
Employees are paid 1% times the regular hourly rate for all hours worked in excess of 40 hours per week FICA taxes are 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). Cullumber Company is subject to 5.4% state unemployment taxes and 0.6% federal unemployment
taxes on the first $7,000 of gross earnings
$10
Prepare the journal entry to record Cullumber's payroll tax expense. (Credit account titles are automatically indented when amount is
entered. Do not indent manually. Round answers to 2 decimal places, eg. 15.25)
Credit
25
25
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