Kip Lee 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 the first $147,000 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% of the first $7,000 State Unemployment tax - 0.05% on the first $14,000 401(k) plan - 3% per pay period Child support garnishment - $100 per pay period Health Insurance premium - $95 per pay period 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)

Kip Lee 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 the first $147,000 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% of the first $7,000 State Unemployment tax - 0.05% on the first $14,000 401(k) plan - 3% per pay period Child support garnishment - $100 per pay period Health Insurance premium - $95 per pay period 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)

PAYROLL ACCT.,2019 ED.(LL)-TEXT

19th Edition

ISBN:9781337619783

Author:BIEG

Publisher:BIEG

Chapter6: Analysing And Journalizing Payroll

Section: Chapter Questions

Problem 7PA

See similar textbooks

Related questions

Q: Peyton Company's payroll for the year is $737,910. Of this amount, $472,120 is for wages paid in…

A: Introduction: Taxable income: Tax is calculated on taxable income only. Formula: Total unemployment…

Q: Sky Co. employed Tom Mills in Year 1. Tom earned $5,300 per month and worked the entire yearAssume…

A: Tax refers to the financial charge which is compulsory in nature and it is imposed through the…

Q: William Corp. pays its employees every two weeks. Employee wages earned over a two-week period is…

A: Date Account Titles and Explanation Debit Credit Payroll Tax Expense $6850…

Q: Lopez Company has a single employee, who earns a salary of $2,500 per pay perlod (or $60,000 per…

A: Given that: Salaries Expense = $2500 per pay period

Q: Tam Worldly’s weekly gross earnings for the present week were $2,000. Worldly has two exemptions.…

A: Calculate the Tam worldly federal income tax withholding.

Q: Maze Company has one employee that is paid $1,000 weekly. All of the employee's wages are subject to…

A: Payroll tax expense is the amount if tax charged on the payroll paid to the employees. It includes…

Q: mattola company is giving each of its employees a holiday bonus of $100. what will be the gross…

A: Step1. Add all taxes.FICA social security tax = 6.2%FICA medicare tax = 1.45%State Income tax =…

Q: Carmen Santos is owner and sole employee of CS Corporation. He pays himself a salary of $2,400 this…

A: When a company records the compensation of its employees, such type of accounting is known as…

Q: Sky Company employed Tom Mills in Year 1. Tom earned $5,100 per month and worked the entire year.…

A: Tax refers to the financial charge which is compulsory in nature and it is imposed by the government…

Q: Ana Rosa, president of the Apoka Company, has a bonus arrangement with the company under which she…

A: Bonus = net income x rate100 + rate Provision for income tax = ( net income - bonus ) x tax rate…

Q: Required a. Answer the following questions. (1) What is Tom's net pay per month? (2) What amount…

A: Given data for Year 1:Monthly earnings: $5,700Social Security tax rate: 6%Medicare tax rate:…

Q: Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,500 each…

A: Federal income taxes (FIT) are imposed in USA. Tax is calculated by applying tax rates which…

Q: Morgan is an employee of Redwind Company. He earned $12,350 for the current month. Prior to the…

A: Social security taxes are provided based on the FICA rate of 6.2% and 1.45% for Social security…

Q: Haggerty Company pays its salaried employees monthly on the last day of each month. The annual…

A: Social Security is essentially a benefit given to older workers, the disabled as well as their…

Q: During the first week of February, Gabe Hopen earned $300. Assume that FICA taxes are 7.65 percent…

A: FICA Taxes payable= $300 x 7.65% = $22.95 State unemployment taxes payable= $300 x 5% = $15.00…

Q: 742.88 Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,500…

A: Given that, Kip Bowmen is a owner and sole employee of KB Corporation Salary of Kip Bowmen = $1500…

Q: John Jansen, an employee of Redwood Company, had gross earnings for the month of May of $4,000. FICA…

A: FICA (Federal insurance contributions act) is the deduction of some percentage out of the gross…

Q: Garrison Shops had a SUTA tax rate of 3.7%. The state's taxable limit was $8,000 of each employee's…

A: When a company records the compensation of its employees, such type of accounting is known as…

Q: Sky Company employed Tom Mills in Year 1. Tom earned $5,900 per month and worked the entire year.…

A: To calculate Tom's net pay and the FICA payroll tax, let's break it down:Net Pay Calculation:Tom's…

Q: In the following problems, use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages.…

A: FUTA tax for the year = (Total payroll for the year - wages paid in excess of $7,000) x FUTA tax…

Q: Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,500 each…

A: Journal Entries A journal entry is a record of transactions in the company's books. A minimum…

Q: Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and…

A: Tax liability is the total amount of tax debt owed to government by an individual, corporation or…

Q: Peyton Company's payroll for the year is $741,150. Of this amount, $472,770 is for wages paid in…

A: Federal income taxes are imposed in USA. The income tax is calculated by implementing tax rate which…

Q: William Corp. pays its employees every two weeks. Employee wages earned over a two-week period is…

A: Accounts Debit Credit Wages expense 250000 Social security tax payable (6% x $250000)…

Q: William Corp. pays its employees every two weeks. Employee wages earned over a two-week period is…

A: Particular Debit ($) Credit ($)…

Q: Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,500 each…

A: The amount that the employers pays the employee is known as gross wages and there are a lot of…

Q: Sky Company employed Tom Mills in Year 1. Tom earned $5,300 per month and worked the entire year.…

A: Answer:- Payroll tax:- A payroll tax is a tax that is deducted by an employer from an employee's pay…

Q: Peyton Company's payroll for the year is $747,790. Of this amount, $468,730 is for wages paid in…

A: FUTA stands for Federal Unemployment Tax Act which imposes a liability on the employers to…

Q: a. Answer the following questions: 1. What is Tom's net pay per month? 2. What amount does Tom pay…

A: Please find the all necessary calculations in the below steps.

Q: Record the payroll entry and payroll tax entry for the pay of the week ended June 7 (his…

A: Tax refers to the amount charged by the government on individuals, partnership firms, HUF’s or any…

Q: Sky Company employed Tom Mills in Year 1. Tom earned $5,900 per month and worked the entire year.…

A: Tax refers to the financial charge which is compulsory in nature and it is imposed through the…

Question

Kip Lee 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 the first $147,000

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% of the first $7,000

State Unemployment tax - 0.05% on the first $14,000

401(k) plan - 3% per pay period

Child support garnishment - $100 per pay period

Health Insurance premium - $95 per pay period

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)

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction of payroll

VIEW

Step 2: Prepare the journal entry to record the payroll entry and payroll tax

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and the amount of federal income tax withholding are as follows. Lemurs payroll deductions include FICA Social Security at 6.2%, FICA Medicare at 1.45%, FUTA at 0.6%, SUTA at 5.4%, federal income tax as previously shown, state income tax at 5% of gross pay, and 401(k) employee contributions at 2% of gross pay. Record the entry for the employee payroll on December 31.
Lisa records nonrefundable Federal income tax credits of 65,000 for the year. Her regular income tax liability before credits is 190,000, and her TMT is 150,000. a. What is Lisas AMT? b. What is Lisas regular income tax liability after credits?
For tax purposes, assume that the maximum taxable earnings are 118,500 for Social Security and 7,000 for the unemployment tax and that all earnings are taxable for Medicare. For the payroll register for the month of November for Shelby, Inc., determine the taxable earnings for each employee.
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 $132,900 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
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 $132,900 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
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…
Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,700 each week. Additional tax information includes: FICA tax—OASDI 6.2% on first $137,700 FICA tax—HI 1.45% on total pay Federal income tax $255.00 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 $110 per pay Health insurance premium $95 per pay Here is what I need help with: Record the payroll entry and payroll tax entry for the pay of the week ended June 7 (his year-to-date pay is $35,700). If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. Account Debit Credit Payment of wages fill in the blank 35542201cfaf02a_2 fill in the blank 35542201cfaf02a_3 fill in the…
Carmen Santos is owner and sole employee of CS Corporation. He pays himself a salary of $2,400 this week. Additional tax information includes: FICA tax—OASDI 6.2% on first $132,900 FICA tax—HI 1.45% on total pay Federal income tax $532.00 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 $125 per pay Health insurance premium $110 per pay
359.06 148.58 FUTA Taxes Payable 742.88 SUTA Taxes Payable 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 $132,900 1.45% on total pay FICA tax-HI Federal income tax $232.00 per pay State income tax 22% of the federal income tax withholding Federal unermployment 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 Payment of Wages and Payroll Taxes 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. Round your answers to the nearest cent. Account Debit Credit Payment of vages Wages Expense FICA Taxes Payable-OASDI FICA Taxes Payable-HI Emplovees FIT Pavable ems Check My Work 3 more Chec My…
Garrison Shops had a SUTA tax rate of 3.7%. The state's taxable limit was $8,000 of each employee's earnings. For the year, Garrison Shops had FUTA taxable wages of $67,900 and SUTA taxable wages of $83,900. Compute: Round your answers to the nearest cent. a. Net FUTA tax $ b. Net SUTA tax $
Use the following information to calculate the federal average tax rate (ignore tax credits) for a taxpayer who earned $115,000 from employment, and where bonds were sold for $20,000 during the year that originally cost $10,000: Taxable income Up to $47,630 On the next $47,629 On the next $52,408 On the next $62,704 Over $210,371 Select one: Tax Rate 15% 20.5% Based on the above, the average tax rate (ATR) is closest to: a. 19.15% b. 19,45% c. 20.5% d. 26.0% 26% 29% 33%
Lopez Company has a single employee, who earns a salary of $2,500 per pay perlod (or $60,000 per year). The employee's paycheck, dated January 15 of the current year, included withholdings of $400 for employee income taxes, $191.25 for FICA-Social Security Taxes, and $150.00 for FICA-Medicare Taxes. FUTA specifies a federal tax rate of 6.0% on taxable wages up to the first $7,000 for each employee. Complete the necessary journal entry. (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 Record the compensation expense for FICA taxes and FUTA taxes. Note: Enter debits before credits. Date General Journal Debit Credit January 15 Clear ento Maw.popacallourn Pecordentn