PROBLEM 8-2A Complete Accounting Services has the following payroll information for the week ended December 7. State income tax is computed as 20 percent of federal income tax. K DEDUCTIONS 1 BEGINNING CUMULATIVE STATE FEDERAL INCOME TAX 24.00 23.00 58.00 3 INCOME TAX TOTAL EARNINGS 480.00 470.00 740.00 540.00 4. NAME EARNINGS 6,820.00 6,840.00 36,320.00 26,200.00 116,060.00 28,426.00 4.80 4.60 11.60 6.00 Denato, T. 6 5. Herrera, M. Joyner, J. 8. 30.00 King, L. 9 Wilson, M. 10 Yee, N. 2,720.00 605.00 456.78 37.00 91.36 7.40 11 Assumed tax rates are as follows: FICA: Social Security, (employer) 6.2 percent (0.062) and (employee) 6.2 percent (0.062) on the first $118,500 for each employee, and Medicare, 1.45 percent (0.0145) on all earnings for each employee. b. State unemployment tax, 5.4 percent (0.054) on the first $7,000 for each employee. Federal unemployment tax, 0.6 percent (0.006) on the first $7,000 for each employee. a. C. Required 1. Complete the payroll register. Payroll checks begin with Ck. No. 5714 in the payroll register. 2. Prepare a general journal entry to record the payroll as of December 7. The company's general ledger contains a Salary Expense account and a Salaries Payable account. 3. Prepare a general journal entry to record the payroll taxes as of December 7.
PROBLEM 8-2A Complete Accounting Services has the following payroll information for the week ended December 7. State income tax is computed as 20 percent of federal income tax. K DEDUCTIONS 1 BEGINNING CUMULATIVE STATE FEDERAL INCOME TAX 24.00 23.00 58.00 3 INCOME TAX TOTAL EARNINGS 480.00 470.00 740.00 540.00 4. NAME EARNINGS 6,820.00 6,840.00 36,320.00 26,200.00 116,060.00 28,426.00 4.80 4.60 11.60 6.00 Denato, T. 6 5. Herrera, M. Joyner, J. 8. 30.00 King, L. 9 Wilson, M. 10 Yee, N. 2,720.00 605.00 456.78 37.00 91.36 7.40 11 Assumed tax rates are as follows: FICA: Social Security, (employer) 6.2 percent (0.062) and (employee) 6.2 percent (0.062) on the first $118,500 for each employee, and Medicare, 1.45 percent (0.0145) on all earnings for each employee. b. State unemployment tax, 5.4 percent (0.054) on the first $7,000 for each employee. Federal unemployment tax, 0.6 percent (0.006) on the first $7,000 for each employee. a. C. Required 1. Complete the payroll register. Payroll checks begin with Ck. No. 5714 in the payroll register. 2. Prepare a general journal entry to record the payroll as of December 7. The company's general ledger contains a Salary Expense account and a Salaries Payable account. 3. Prepare a general journal entry to record the payroll taxes as of December 7.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:PROBLEM 8-2A Complete Accounting Services has the following payroll information
for the week ended December 7. State income tax is computed as 20 percent of federal
income tax.
CLGL
A
C
K
DEDUCTIONS
BEGINNING
STATE
FEDERAL
CUMULATIVE
INCOME TAX
INCOME TAX
NAME
EARNINGS
TOTAL EARNINGS
Denato, T.
6
480.00
470.00
740.00
24.00
23.00
58.00
4.80
4.60
11.60
6,820.00
6,840.00
36,320.00
26,200.00
116,060.00
28,426.00
Herrera, M.
7
Joyner, J.
King, L.
9.
30.00
6.00
540.00
Wilson, M.
10 Yee, N.
11
2,720.00
605.00
456.78
37.00
91.36
7.40
Assumed tax rates are as follows:
FICA: Social Security, (employer) 6.2 percent (0.062) and (employee) 6.2 percent
(0.062) on the first $118,500 for each employee, and Medicare, 1.45 percent
(0.0145) on all earnings for each employee.
b. State unemployment tax, 5.4 percent (0.054) on the first $7,000 for each employee.
Federal unemployment tax, 0.6 percent (0.006) on the first $7,000 for each
employee.
a.
С.
Check Figure
Payroll Tax Expense,
$428.00
Required
1. Complete the payroll register. Payroll checks begin with Ck. No. 5714 in the payroll
register.
2. Prepare a general journal entry to record the payroll as of December 7. The
company's general ledger contains a Salary Expense account and a Salaries Payable
account.
3. Prepare a general journal entry to record the payroll taxes as of December 7.
4. Journalize the entry to pay the payroll on December 9. (Assume that the company
has transferred cash to the Cash-Payroll Bank Account for this payroll.)
1234
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