Nash Company pays its office employee payroll weekly. Below is a partial list of employees and their payroll data for August. Because August is their vacation period, vacation pay is also listed. Employee Mark Hamill Karen Robbins Brent Kirk Alec Guinness Ken Sprouse Earnings to July 31 $5,180 4.480 3.680 8,380 8,980 Weekly Pay $280 230 190 330 410 Vacation Pay to Be Received in August $460 380 820 Assume that the federal income tax withheld is 10% of wages. Union dues withheld are 2% of wages. Vacations are taken the second and third weeks of August by Robbins, Kirk, and Sprouse. The state unemployment tax rate is 2.5% and the federal is 0.8%, both on a $7,000 maximum. The FICA rate is 7.65% on employee and employer on a maximum of $128,400 per employee. In addition, a 1.45% rate is charged both employer and employee for an employee's wages in excess of $128,400. Make the journal entries necessary for each of the four August payrolls. The entries for the payroll and for the company's liability are made separately. Also make the entry to record the monthly payment of accrued payroll liabilities. (Round answers to 2 decimal places, eg. 15.25. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Nash Company pays its office employee payroll weekly. Below is a partial list of employees and their payroll data for August. Because August is their vacation period, vacation pay is also listed. Employee Mark Hamill Karen Robbins Brent Kirk Alec Guinness Ken Sprouse Earnings to July 31 $5,180 4.480 3.680 8,380 8,980 Weekly Pay $280 230 190 330 410 Vacation Pay to Be Received in August $460 380 820 Assume that the federal income tax withheld is 10% of wages. Union dues withheld are 2% of wages. Vacations are taken the second and third weeks of August by Robbins, Kirk, and Sprouse. The state unemployment tax rate is 2.5% and the federal is 0.8%, both on a $7,000 maximum. The FICA rate is 7.65% on employee and employer on a maximum of $128,400 per employee. In addition, a 1.45% rate is charged both employer and employee for an employee's wages in excess of $128,400. Make the journal entries necessary for each of the four August payrolls. The entries for the payroll and for the company's liability are made separately. Also make the entry to record the monthly payment of accrued payroll liabilities. (Round answers to 2 decimal places, eg. 15.25. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Nash Company pays its office employee payroll weekly. Below is a partial list of employees and their payroll data for August. Because
August is their vacation period, vacation pay is also listed.
Employee
Mark Hamill
Karen Robbins
Brent Kirk
Alec Guinness
Ken Sprouse
Earnings to
July 31
$5,180
4,480
3,680
8,380
8,980
Weekly
Pay
$280
230
190
330
410
Salaries and Wages Experts
Vacation Pay to Be
Received in August
Account Titles and Explanation
$460
380
820.
Assume that the federal income tax withheld is 10% of wages. Union dues withheld are 2% of wages. Vacations are taken the second
and third weeks of August by Robbins, Kirk, and Sprouse. The state unemployment tax rate is 2.5% and the federal is 0.8%, both on a
$7,000 maximum. The FICA rate is 7.65% on employee and employer on a maximum of $128,400 per employee. In addition, a 1.45%
rate is charged both employer and employee for an employee's wages in excess of $128,400.
Make the journal entries necessary for each of the four August payrolls. The entries for the payroll and for the company's liability are
made separately. Also make the entry to record the monthly payment of accrued payroll liabilities. (Round answers to 2 decimal places.
eg. 15.25. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically
indented when amount is entered. Do not indent manually.)
4
Debit
Credit
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