McLaughlin Manufacturing has the following data available for its March 31 payroll:*All subject to Social Security and Medicare matching and withholding at 6.2% and 1.45%, respectively.Federal unemployment taxes of 0.50% and state unemployment taxes of 0.80% are payable on the first $1,000,000.1Wages earnedFederal income taxes withheld234General Journal Instructions5Required:1. Compute the taxes payable and wages that will be paid to employees. Then prepare the journal entries to record the wages earned and thepayroll taxes1b. Prepare the journal entries for the transactions on March 31.2. Conceptual Connection: McLaughlin Manufacturing would like to hire a new employee at a salary of $60,000. Assuming Social Security andMedicare taxes are as described earlier in the problem (with unemployment taxes paid on the first $7,000) and fringe benefits (e.g., healthinsurance, retirement, etc.) are 28% of gross pay, what will be the total cost of this employee for McLaughlin?Social SecurityMedicare1a. Compute the taxes payable and wages that will be paid to employees.State unemploymentFederal unemploymentNet pay$1,750,000*252,840All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback.DATEMar. 31Total CostACCOUNT$3,720 X$870 X$35$56 X$16,800 XGENERAL JOURNAL$21,481 XPOST. REF.DEBIT2. Conceptual Connection: McLaughlin Manufacturing would like to hire a new employee at asalary of $60,000. Assuming Social Security and Medicare taxes are as described earlier inthe problem (with unemployment taxes paid on the first $7,000) and fringe benefits (e.g.,health insurance, retirement, etc.) are 28% of gross pay, what will be the total cost of thisemployee for McLaughlin?CREDIT

Payroll deductions are the amounts that are deducted or withheld from the paycheck of the employees…

McLaughlin Manufacturing has the following data available for its March 31 payroll: Wages earned Federal income taxes withheld $1,750,000* 252,840 *All subject to Social Security and Medicare matching and withholding at 6.2% and 1.45%, respectively. Federal unemployment taxes of 0.50% and state unemployment taxes of 0.80% are payable on the first $1,000,000. Required: 1. Compute the taxes payable and wages that will be paid to employees. Then prepare the journal entries to record the wages earned and the payroll taxes. 2. Conceptual Connection: McLaughlin Manufacturing would like to hire a new employee at a salary of $60,000. Assuming Social Security and Medicare taxes are as described earlier in the problem (with unemployment taxes paid on the first $7,000) and fringe benefits (e.g., health

McLaughlin Manufacturing has the following data available for its March 31 payroll: Wages earned Federal income taxes withheld $1,750,000* 252,840 *All subject to Social Security and Medicare matching and withholding at 6.2% and 1.45%, respectively. Federal unemployment taxes of 0.50% and state unemployment taxes of 0.80% are payable on the first $1,000,000. Required: 1. Compute the taxes payable and wages that will be paid to employees. Then prepare the journal entries to record the wages earned and the payroll taxes. 2. Conceptual Connection: McLaughlin Manufacturing would like to hire a new employee at a salary of $60,000. Assuming Social Security and Medicare taxes are as described earlier in the problem (with unemployment taxes paid on the first $7,000) and fringe benefits (e.g., health

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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According to a summary of the payroll of PJW Co., $380,500 in earnings were subject to the 7.7% FICA tax. Also, $62,783 in earnings were subject to state and federal unemployment taxes. Round your answers to the nearest cent. a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 4.4%; federal unemployment, 1.1%.
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According to a summary of the payroll of Scotland Company, $450,000 was subject to the 6.0% social security tax and $500,000 was subject to the 1.5% Medicare tax. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (4.2%) and federal (0.8%) unemployment taxes. The journal entry to record accrued payroll taxes would include a A) credit to SUTA Payable of $18,900 B) debit to SUTA Payable of $630 C) debit to SUTA Payable of $18,900 D) credit to SUTA Payable of $630
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