(To record employer's labilities)Oct. 31(To record wages paid)Nov. 10AceVie(To record redemption of gift card)AccQueAccoQue(To record cost for the product sold)AccouNov. 15QuesAccounQuesr(To record cost for the product sold)Νov. 15Nov. 30Dec. 15 Farenholtz Ventures Ltd. had the following transactions to account for:Oct. 18 The company sold gift cards totalling $2,300 to a corporate customer who was using them for an employee promotion.The company's four employees earned total wages of $10,800 during the month. The source deductions on these wageswere CPP of $535, EI of $208 and income taxes of $2,.160. The company's CPP premiums on these wages were $535,while the El premiums were $291.Oct. 31The company paid the wages recorded on October 31"Nov. 2Nov. 10Customers redeemed gift cards to pay for $2,100 in sales. Farenholtz's cost for the products sold was $885.Nov. 15The company remitted the source deductions related to the October 31"payroll.The board of directors of Farenholtz declared dividends of $2.00 per share on the company's common shares. Therewere 9.500 common shares issued at this date. The dividends are payable on Decembek 15thNov. 30The company paid the dividends declared on November 30"Dec. 15Prepare journal entries for the above transactions. (Credit account titles are automatically indented when the amount isentered, Do not indent manually. If no entry is required, select "No entry for the account titles and enter O for the amounts.)QuDate Account and explanationDebitCreditAccOct. 18QuAcccOurPrepare journal entries for the above transactions. (Credit account titles are automatically indented when the amount isentered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.)Date Account and explanationDebitCreditOct. 18Oct. 31(To record wages payable)Oct. 31(To record employer's liabilities)

Farenholtz Ventures Ltd. had the following transactions to account for: Oct. 18 The company sold gift cards totalling $2,300 to a corporate customer who was using them for an employe The company's four employees earned total wages of $10,800 during the month. The source deductions c were CPP of $535, El of $208 and income taxes of $2,160. The company's CPP premiums on these wages while the El premiums were $291. Oct. 31 Nov. 2 The company paid the wages recorded on October 31" Nov. 10 Customers redeemed gift cards to pay for $2,100 in sales. Farenholtz's cost for the products sold was $885 Nov. 15 The company remitted the source deductions related to the October 31" payroll.

Farenholtz Ventures Ltd. had the following transactions to account for: Oct. 18 The company sold gift cards totalling $2,300 to a corporate customer who was using them for an employe The company's four employees earned total wages of $10,800 during the month. The source deductions c were CPP of $535, El of $208 and income taxes of $2,160. The company's CPP premiums on these wages while the El premiums were $291. Oct. 31 Nov. 2 The company paid the wages recorded on October 31" Nov. 10 Customers redeemed gift cards to pay for $2,100 in sales. Farenholtz's cost for the products sold was $885 Nov. 15 The company remitted the source deductions related to the October 31" payroll.

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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Caribbean Tours’ total payroll for the month of January was $600,000. The following withholdings, fringe benefits, and payroll taxes apply:Federal and state income tax withheld $60,000 Health insurance premiums paid by employer (payable to Blue Cross) 10,800 Contribution to retirement plan paid by employer (payable to Fidelity) 24,000 FICA tax rate (Social Security and Medicare) 7.65% Federal and state unemployment tax rate 6.20%Assume that none of the withholdings or payroll taxes has been paid by the end of January (record them as payables), and no employee’s cumulative wages exceed the relevant wage bases. Required: 1. Record the employee salary expense, withholdings, and salaries payable. 2. Record the employer-provided fringe benefits. 3. Record the employer payroll taxes.
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On January 15, the end of the first pay period of the year, North Company's employees earned $40,000 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $3,100 of federal income taxes, $593 of medical insurance deductions, and $230 of union dues. No employee earned more than $7,000 in this first period. Prepare the journal entry to record North Company's January 15 salaries expense and related liabilities. View transaction list Journal entry worksheet 1 Record the employee payroll for period. Note: Enter debits before credits. Date January 15 General Journal Debit Credit Record entry Clear entry View general journal
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The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co.: Salaries: Deductions: Sales salaries $540,000 Income tax withheld $160,000 Warehouse salaries 155,000 U.S. savings bonds 10,500 Office salaries 85,000 Group insurance 9,000 $780,000 Tax rates assumed: Social security 6% State unemployment (employer only) 5.4% Medicare 1.5% Federal unemployment (employer only) 0.8% Required: 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): a. December 30, to record the payroll. b. December 30, to record the employer’s payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $48,000 is subject to unemployment compensation taxes. 2. Assuming that the payroll for the last…
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $132,900 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Gross Pay through August 31 Gross Pay for September a. $ 6,500 $ 1,900 b. 2,800 2,900 c. 128,600 10,000 Assuming situation (a), prepare the employer’s September 30 journal entry to record the employer’s payroll taxes expense and its related liabilities.
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Gross Pay through August 31 Gross Pay for September a. $ 6,400 $ 800 b. 2,000 2,100 c. 131,400 8,000 Exercise 9-8 (Static) Payroll-related journal entries LO P2 Assuming situation (a), prepare the employer's September 30 journal entry to record salary expense and its related payroll liabilities for this employee. The employee's federal income taxes withheld by the employer are $80 for this pay period. Prepare the employer's September 30 journal entry to record accrued salary expense and its related payroll liabilities for this employee.