K Larry Walsh is general manager of United Salons. During 2024, Walsh worked for the company all year at a $12.200 monthly salary. He also eamed a year-end bonus equal to 10% of his annual salary Walsh's federal income tax withheld during 2024 was $2,684 per month, plus $1,454 on his bonus check State income tax withheld came to $100 per month, plus $40 on the bonus FICA tax was withheld on the annual eamings. Walsh authorized the following payroll deductions Charity Fund contribution of 4% of total earings and life insurance of $30 per month United incured payroll tax expense on Walsh for FICA tax. The company also paid state unemployment tax and federal unemployment tax (Click the icon to view payroll tax rate information) Read the requirements Requirement 1. Compute Walsh's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar Begin by computing Walsh's gross pay for the year. (Round all amounts to the nearest dollar) Gross pay Gross Pay

K Larry Walsh is general manager of United Salons. During 2024, Walsh worked for the company all year at a $12.200 monthly salary. He also eamed a year-end bonus equal to 10% of his annual salary Walsh's federal income tax withheld during 2024 was $2,684 per month, plus $1,454 on his bonus check State income tax withheld came to $100 per month, plus $40 on the bonus FICA tax was withheld on the annual eamings. Walsh authorized the following payroll deductions Charity Fund contribution of 4% of total earings and life insurance of $30 per month United incured payroll tax expense on Walsh for FICA tax. The company also paid state unemployment tax and federal unemployment tax (Click the icon to view payroll tax rate information) Read the requirements Requirement 1. Compute Walsh's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar Begin by computing Walsh's gross pay for the year. (Round all amounts to the nearest dollar) Gross pay Gross Pay

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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William Corp. pays its employees every two weeks. Employee wages earned over a two-week period is $250,000. All wages are subject to social security and Medicare taxes, while $50,000 of wages are subject to federal and state unemployment taxes. Tax rates are the following: • Social security tax 6.0%• Medicare tax 1.5%• State unemployment compensation tax 5.4%• Federal unemployment compensation tax 0.8% Additionally, the total amount withheld from wages for federal income taxes is $75,000 and the total amount withheld for state income taxes is $12,500. ________________________________________ When William Corp. records the journal entry to recognize payroll every two weeks, Employees’ State Income Tax Payable will be: Question 24 options: Debited for $12,500 Credited for $75,000 Debited for $75,000 Neither debited nor credited Credited for $12,500
Mullen Company pays its employees every other Friday, December 31, 2020, was a Sunday. On Friday, January 5, 2021, Mullen paid wages of $147,000, which covered the 14-day period from December 20, 2020, through January 2, 2021. Wages were eamed evenly across all days, including Saturdays and Sundays. Employee income taxes withheld for this payroll period totaled $17,185, while the FICA tax withheld was $13,300. (Ignore the employer payroll taxes in this exercise.) Prepare the entry to accrue the company's wages and payroll taxes at December 31, 2020. (Assume the $147,000 in wages was the gross amount of the payroll. Record debits first, then credits. Exclude explanations from any journal entries.) Dec Date 2020 31 Salary Expense Salary Payable Journal Entry Accounts Employee Income Tax Payable FICA Tax Payable Y Debit Credit
William Corp. pays its employees every two weeks. Employee wages earned over a two-week period is $250,000. All wages are subject to social security and Medicare taxes, while $50,000 of wages are subject to federal and state unemployment taxes. Tax rates are the following: • Social security tax 6.0%• Medicare tax 1.5%• State unemployment compensation tax 5.4%• Federal unemployment compensation tax 0.8% Additionally, the total amount withheld from wages for federal income taxes is $75,000 and the total amount withheld for state income taxes is $12,500. ________________________________________ When William Corp. records the journal entry to recognize payroll every two weeks, Payroll Tax Expense will be: Question 30 options: Debited for $75,000 Credited for $12,500 Debited for $12,500 Credited for $75,000 Neither debited nor credited
Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,500 each week. Additional tax information includes: FICA tax—OASDI 6.2% on first $128,400 FICA tax—HI 1.45% on total pay Federal income tax $232.00 per pay State income tax 22% of the federal income tax withholding Federal unemployment tax 0.6% on first $7,000 State unemployment tax 0.05% on first $14,000 Additional payroll deductions include: 401(k) plan 3% per pay Child support garnishment $100 per pay Health insurance premium $95 per pay Record the payroll entry and payroll tax entry for the pay of the week ended June 7 (his year-to-date pay is $31,500). If an amount box does not require an entry, leave it blank or enter "0". Round your answers to the nearest cent. Account Debit Credit Payment of wages…
The total payroll of Goodensnake Ranch for the month of March 2023 was $900,000, of which $150,000 represented amounts paid in excess of $142,800 to certain employees. $500,000 represented amounts paid to employees in excess of the $7,000 maximum subject to unemployment taxes. $180,000 of federal income taxes and $18,000 of union dues were withheld. The state unemployment tax is 1%, the federal unemployment tax is .8%, and the current F.I.C.A. tax is 7.65% on an employee’s wages to $142,800 and 1.45% in excess of $142,800. What amount should Goodensnake Ranch record as payroll tax expense? a. $66,750 b. $98,100 c. $76,050 d. $264,750
3. An employee works 51 hours (51-40 were overtime hours) during a workweek in December of 2021. He earns $10.000/month, with his employer paying 1.5 times the regular rate of pay for overtime hours. To date, he has eamed $144,100 during the year. He has requested that his employer withhold 9% of gross pay, which is to be contributed to a 401(k) plan. Taxabin income for federal income tax withholding S 3,213.44 X Taxable income for social security tax-$ 0.00 Taxable income for medicare tax-$ 3,531.25 PREVIOUS NEXT SUBMIT ASSIGNMENT
Sky Company employed Tom Mills in Year 1. Tom earned $5,300 per month and worked the entire year. Assume the Social Security tax rate is 6 percent for the first $110,000 of earnings, and the Medicare tax rate is 1.5 percent. Tom's federal income tax withholding amount is $940 per month. Use 5.4 percent for the state unemployment tax rate and 0.6 percent for the federal unemployment tax rate on the first $7,000 of earnings per employee. Required a. Answer the following questions. (1) What is Tom's net pay per month? (2) What amount does Tom pay monthly in FICA payroll taxes? (3) What is the total payroll tax expense for Sky Company for January Year 1? February Year 1? March Year 1? December Year 1? b. Assume that instead of $5,300 per month Tom earned $9,700 per month. Answer the following questions. (1) What is Tom's net pay per month? (2) What amount does Tom pay monthly in FICA payroll taxes? (3) What is the total payroll tax expense for Sky Company for January Year 1? February Year…
The following is a payroll sheet for Otis Imports for the month of September 2020. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% FICA tax on employee and employer on a maximum of $128,400. In addition, 1.45% is charged both employer and employee for an employee’s wages in excess of $128,400 per employee.Name Earningsto Aug. 31 SeptemberEarnings IncomeTaxWithholding FICA Unemployment TaxStateFederalB.D. Williams$ 6,800$ 800D. Raye6,500700K. Baker7,6001,100F. Lopez13,6001,900A. Daniels116,90013,000B. Kingston121,90016,000Instructionsa. Complete the payroll sheet and make the necessary entry to record the payment of the payroll.b. Make the entry to record the payroll tax expenses of Otis Imports.c. Make the entry to record the payment of the payroll liabilities created. Assume that the company pays all payroll…
National incurred payroll tax expense on White for FICA tax. The company also paid state unemployment tax and federal unemployment tax. O (Click the icon to view payroll tax rate information.) Logan White is general manager of National Salons. During 2024, White worked for the company all year at a $14,200 monthly salary. He also earmed a year-end bonus equal to 5% of his annual salary. White's federal income tax withheld during 2024 was $1,420 per month, plus $2,726 on his bonus check. State income tax withheld came to $90 per month, plus $80 on the bonus. FICA tax was withheld on the annual earnings. White authorized the following payroll deductions: Charity Fund contribution of 3% of total earnings and life insurance of $25 per month. Read the reauirermenta. 378 Stato Unemployment Taxos Payablo Requirement 5. Make the journal entry for the payment of the payroll withholdings and taxes. (Record debits first, then credits. Exclude explanations from joumal entries.) Debit Credit Date…
Can I do a general journal entry on this scenario, if so how do i do it? Master Flow’s first employee, Emma Stone starts at the Company. She will be responsible for Warehouse Management. She will be paid $20 / Hour. Emma works 30 Hours / Pay Period (every two weeks). The pay period ends on 12-31-20. Emma’s Federal Tax Withholding is $50, based on her W4, and all other standard payroll taxes apply at their appropriate rates. She does not receive benefits and does not have any contributions of any type withheld from her pay.
Damerly Company (a Utah employer) wants to give a holiday bonus check of $375 to each employee. Since it wants the check amount to be $375, it will need to gross-up the amount of the bonus. Calculate the withholding taxes and the gross amount of the bonus to be made to John Rolen if his cumulative earnings for the year are $46,910. Besides being subject to social security taxes and federal income tax (supplemental rate), a 4.95% Utah income tax must be withheld on supplemental payments.
Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of $8,838. The Federal Insurance Contributions Act (FICA) tax for social security is 6.2% of the first $137,700 of employee earnings each calendar year and the Federal Insurance Contributions Act (FICA) tax rate for Medicare is 1.45% of all earnings. The Federal Unemployment Taxes (FUTA) tax rate of 0.6% and the State Unemployment Taxes (SUTA) tax rate of 5.4% are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from her earnings was $1,466.47. Her net pay for the month is: (Round your intermediate calculations to two decimal places.) Multiple Choice $7,586.59 $6,695.42 $6,639.42 $6,261.42 $6,823.57