Pearl Hardware payroll for November 2020 is summarized below. Amount Subject to Payroll Taxes Unemployment Tax Payroll Wages Due FICA Federal State Factory $129,400 $129,400 $37,200 $37,200 Sales 33,600 33,600 4,200 4,200 Administrative 35,000 35,000 Total $198,000 $198,000 $41,400 $41,400 At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee’s wages to $128,400 and 1.45% in excess of $128,400. Of the $198,000 wages subject to FICA tax, $19,900 of the sales wages is in excess of $128,400. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $17,200 for factory, $7,300 for sales, and $6,300 for administrative. Prepare a schedule showing the employer’s total cost of wages for November by function. (Round answers to 0 decimal places, e.g. 5,275.) Factory Sales Administrative Total Salaries and Wages $ $ $ $ FICA Taxes FUTA Taxes SUTA Taxes Total Cost $ $ $ $ LINK TO TEXT Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer’s payroll taxes. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,125.) Account Titles and Explanation Debit Credit Factory Payroll: (To record salaries and wages expense.) (To record payroll tax expense.) Sales Payroll: (To record salaries and wages expense.) (To record payroll tax expense.) Administrative Payroll: (To record salaries and wages expense.) (To record payroll tax expense.)

Pearl Hardware payroll for November 2020 is summarized below. Amount Subject to Payroll Taxes Unemployment Tax Payroll Wages Due FICA Federal State Factory $129,400 $129,400 $37,200 $37,200 Sales 33,600 33,600 4,200 4,200 Administrative 35,000 35,000 Total $198,000 $198,000 $41,400 $41,400 At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee’s wages to $128,400 and 1.45% in excess of $128,400. Of the $198,000 wages subject to FICA tax, $19,900 of the sales wages is in excess of $128,400. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $17,200 for factory, $7,300 for sales, and $6,300 for administrative. Prepare a schedule showing the employer’s total cost of wages for November by function. (Round answers to 0 decimal places, e.g. 5,275.) Factory Sales Administrative Total Salaries and Wages $ $ $ $ FICA Taxes FUTA Taxes SUTA Taxes Total Cost $ $ $ $ LINK TO TEXT Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer’s payroll taxes. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,125.) Account Titles and Explanation Debit Credit Factory Payroll: (To record salaries and wages expense.) (To record payroll tax expense.) Sales Payroll: (To record salaries and wages expense.) (To record payroll tax expense.) Administrative Payroll: (To record salaries and wages expense.) (To record payroll tax expense.)

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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Pearl Hardware payroll for November 2020 is summarized below.

			Amount Subject to Payroll Taxes
				Unemployment Tax
Payroll	Wages Due	FICA		Federal	State
Factory	$129,400	$129,400		$37,200	$37,200
Sales	33,600	33,600		4,200	4,200
Administrative	35,000	35,000
Total	$198,000	$198,000		$41,400	$41,400

At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee’s wages to $128,400 and 1.45% in excess of $128,400. Of the $198,000 wages subject to FICA tax, $19,900 of the sales wages is in excess of $128,400. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $17,200 for factory, $7,300 for sales, and $6,300 for administrative.

Prepare a schedule showing the employer’s total cost of wages for November by function. (Round answers to 0 decimal places, e.g. 5,275.)

	Factory	Sales	Administrative	Total
Salaries and Wages	$	$	$	$
FICA Taxes
FUTA Taxes
SUTA Taxes
Total Cost	$	$	$	$

LINK TO TEXT

Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer’s payroll taxes. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,125.)

Account Titles and Explanation	Debit	Credit
Factory Payroll:




(To record salaries and wages expense.)




(To record payroll tax expense.)
Sales Payroll:




(To record salaries and wages expense.)




(To record payroll tax expense.)
Administrative Payroll:




(To record salaries and wages expense.)


(To record payroll tax expense.)

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