Kashi Sales, LLC, produces healthy, whole-grain foods such as breakfast cereals, frozen dinners, and granola bars. Assume payroll for the month of January was $410,000 and the following withholdings, fringe benefits, and payroll taxes apply: Federal and state income tax withheld Health insurance premiums (Blue Cross) paid by employer Contribution to retirement plan (Fidelity) paid by employer FICA tax rate (Social Security and Medicare) Federal and state unemployment tax rate Assume that Kashi has paid none of the withholdings or payroll taxes 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. D (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Record the employee salary expense, withholdings, and salaries payable. Bate January 31 Note: Enter debits before credits. General Journal $126,000 12,100 51,000 7.65% 6.20% Debit Credit *** Next >

Kashi Sales, LLC, produces healthy, whole-grain foods such as breakfast cereals, frozen dinners, and granola bars. Assume payroll for the month of January was $410,000 and the following withholdings, fringe benefits, and payroll taxes apply: Federal and state income tax withheld Health insurance premiums (Blue Cross) paid by employer Contribution to retirement plan (Fidelity) paid by employer FICA tax rate (Social Security and Medicare) Federal and state unemployment tax rate Assume that Kashi has paid none of the withholdings or payroll taxes 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. D (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Record the employee salary expense, withholdings, and salaries payable. Bate January 31 Note: Enter debits before credits. General Journal $126,000 12,100 51,000 7.65% 6.20% Debit Credit *** Next >

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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Urban Window Company had gross wages of $310,000 during the week ended July 15. The amount of wages subject to social security tax was $310,000, while the amount of wages subject to federal and state unemployment taxes was $35,000. Tax rates are as follows: Social security 6.0% Medicare 1.5% State unemployment 5.4% Federal unemployment 0.6% The total amount withheld from employee wages for federal taxes was $47,000. Required: A. Journalize the entry to record the payroll for the week of July 15.* B. Journalize the entry to record the payroll tax expense incurred for the week of July 15.* *Refer to the Chart of Accounts for exact wording of account titles.
Paloma Company has four employees. FICA Social Security taxes are 6.2 % of the first $137,700 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Also, for the first $7,000 paid to each employee, the company's FUTA taxes are 0.6% and SUTA taxes are 5.4%. The company is preparing its payroll calculations for the week ended August 25. Payroll records show the following information for the company's four employees. Name Dali Trey Kiesha Chee Gross Pay through August 18 $ 125,400 135,300 7,800 1,750 Employee Tax Rate Dali Current Week Trey Kiesha Chee Gross Pay $ 5,600 2,400 1,600 2,000 In addition to gross pay, the company must pay one-half of the $74 per employee weekly health insurance, each employee pays the remaining one-half. The company also contributes an extra 8% of each employee's gross pay (at no cost to employees) to a pension fund. Required: Compute the following for the week ended August 25 Note: Round your intermediate calculations and final answers to 2…
Kashi Sales, L.L.C., produces healthy, whole-grain foods such as breakfast cereals, frozen dinners, and granola bars. Assume payroll for the month of January was $500,000 and the following withholdings, fringe benefits, and payroll taxes apply:Federal and state income tax withheld $135,000Health insurance premiums (Blue Cross) paid by employer 13,000Contribution to retirement plan (Fidelity) paid by employer 60,000FICA tax rate (Social Security and Medicare) 7.65%Federal and state unemployment tax rate 6.20%Assume that Kashi has paid none of the withholdings or payroll taxes 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.
Westway Company pays Suzie Chan $3,020 per week. Assume Social Security is 6.2% on $142, 800 and 1.45% for Medicare. By the end of week 52, how much did Westway deduct for Suzie's Social Security and Medicare for the year? What state and federal unemployment taxes does Westway pay on Suzie's yearly salary? The state unemployment rate is 5.1% and the federal unemployment tax is 0.6% on the first $7,000.
Vaibhav
Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of $9,138. 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 $1,516.27. Her net pay for the month is: (Round your intermediate calculations to two decimal places.) Multiple Choice $6,488.67 О $7,055.17 О $7,813.84 О $6,866.67 $6,922.67 B
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Dineshbhai
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TopStone Inc. employs one person to run its solar management company. The employee's gross income for the month of May is $6,000. Payroll for the month of May is as follows: FICA Social Security tax rate at 6.2%, FICA Medicare tax rate at 1.45%, federal income tax of $400, state income tax of $75, health-care insurance premium of $200, and union dues of $50. The employee is responsible for covering 30% of his or her health insurance premium. A. Record the journal entry to recognize employee payroll for the month of May, dated May 31, 2017. B. Record remittance of the employee's salary with cash on June 1 In 4.1 above, you prepared the journal entries for the employee of TopStone Inc. You have now been given the following additional information: · May is the first pay period for this employee. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to the employee. FICA Social Security and FICA Medicare match employee deductions. The employer is responsible…
Question. Payroll for Kicker Sound Systems for January was $150,000 and the following withholdings, fringe benefits, and payroll taxes apply: Federal and state income taxes withheld $38,000 Health insurance premiums (Blue Cross) paid by employer 12,000 Contribution to retirement plan (Fidelity) paid by employer 15,000 FICA tax rate (Social Security and Medicare) 7.65% Federal and state unemployment tax rate 3.80% Kicker has paid none of the withholdings or payroll taxes by the end of January and no employee's cumulative wages exceed the relevant wage bases. Record the employee salary expense, withholdings, and salaries payable. Record the employer-provided fringe benefits. Record the employer payroll taxes.
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