My text book is Hospitality Industry Financial Accounting (4th edition). I am in chapter 12 -- CURRENT LIABILITIES AND PAYROLL now. There is a question asks me to do two following works: 1. Prepare the necessary journal entry to record the payroll of Hotel Properties, Inc., on February 15, 20X1. 2. Prepare the journal entry that would be made on the date the payroll was actually paid. The scenario is "You have been asked to prepare the entry to record the payroll on February 15, 20X1, for Hotel Properties, Inc. The gross wages are $8,000 for administrative salaries and $6,000 for sales salaries. The federal income tax rate is 28 percent, the state income tax rate is 4.6 percent, and the FICA rate is 7.65 percent for all employees. All wages are subject to these taxes. In addition to taxes withheld, the employer has withheld $128 for the employees contribution to health insurance plan."
My text book is Hospitality Industry Financial Accounting (4th edition). I am in chapter 12 -- CURRENT LIABILITIES AND PAYROLL now.
There is a question asks me to do two following works:
1. Prepare the necessary
2. Prepare the journal entry that would be made on the date the payroll was actually paid.
The scenario is "You have been asked to prepare the entry to record the payroll on February 15, 20X1, for Hotel Properties, Inc. The gross wages are $8,000 for administrative salaries and $6,000 for sales salaries. The federal income tax rate is 28 percent, the state income tax rate is 4.6 percent, and the FICA rate is 7.65 percent for all employees. All wages are subject to these taxes. In addition to taxes withheld, the employer has withheld $128 for the employees contribution to health insurance plan."
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
