Required: Below is a payroll sheet for Riverbed Imports for the month of September 2025. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% FICA tax on employee and employer on a maximum of $142,800. In addition, 1.45% is charged both employer and employee for an employee's wages in excess of $142,800 per employee. Name B.D. Williams D. Raye K. Baker F. Lopez A. Daniels B. Kingston Earnings to Aug.31 $6,900 6,700 7,600 14,800 130,000 135,000 September Income Tax Earnings Withholding $900 800 1,100 1,800 13,900 16,500 FICA Unemployment Tax State Federal 1. Complete the payroll sheet in Excel and make the necessary entry to record the payment of the payroll. 2. Make the entry to record the payroll tax expenses of Riverbed Imports. 3. Make the entry to record the payment of the payroll liabilities created in parts a and b. Assume that the company pays all payroll liabilities at the end of each month. Please round your answers to two decimal places.

Required: Below is a payroll sheet for Riverbed Imports for the month of September 2025. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% FICA tax on employee and employer on a maximum of $142,800. In addition, 1.45% is charged both employer and employee for an employee's wages in excess of $142,800 per employee. Name B.D. Williams D. Raye K. Baker F. Lopez A. Daniels B. Kingston Earnings to Aug.31 $6,900 6,700 7,600 14,800 130,000 135,000 September Income Tax Earnings Withholding $900 800 1,100 1,800 13,900 16,500 FICA Unemployment Tax State Federal 1. Complete the payroll sheet in Excel and make the necessary entry to record the payment of the payroll. 2. Make the entry to record the payroll tax expenses of Riverbed Imports. 3. Make the entry to record the payment of the payroll liabilities created in parts a and b. Assume that the company pays all payroll liabilities at the end of each month. Please round your answers to two decimal places.

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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Concept explainers

Payroll Entries

Payroll is a comprehensive record of employees that are paid by the company. Payroll classifies employees into various categories according to their function and pays scale (basic wage, allowance, income tax, other taxes, employee loans, etc.). Payroll processes form the bedrock of every organization as it contains sensitive information on the ‘wage and paycheck’ portion of the company’s strength—its employees. The organization needs to keep a track of the employees currently on the payroll, the net payout for the company, the record of transactions related to the employees including deductions and payroll taxes to identify the liability and its effect on the balance sheet (and other financial statements). Payroll records also include qualitative factors such as the conduct of the employee.

Question

Required:
Below is a payroll sheet for Riverbed Imports for the month of September 2025. The company is allowed a 1% unemployment compensation rate
by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all
employees and a 7.65% FICA tax on employee and employer on a maximum of $142,800. In addition, 1.45% is charged both employer and
employee for an employee's wages in excess of $142,800 per employee.
Name
B.D. Williams
D. Raye
K. Baker
F. Lopez
A. Daniels
B. Kingston
Earnings
to
Aug.31
$6,900
6,700
7,600
14,800
130,000
135,000
September Income Tax
Earnings Withholding
$900
800
1,100
1,800
13,900
16,500
FICA
Unemployment Tax
State
Federal
1. Complete the payroll sheet in Excel and make the necessary entry to record the payment of the payroll.
2. Make the entry to record the payroll tax expenses of Riverbed Imports.
3. Make the entry to record the payment of the payroll liabilities created in parts a and b. Assume that the company pays all payroll liabilities at
the end of each month. Please round your answers to two decimal places.

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Step 1: Introduction of Payroll Register

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Step 2: Preparation of payroll sheet:

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Step 3: Journal entry to record payment of payroll is as follows:

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Step 4: Journal Entry to record payroll tax expense is as follows:

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Step 5: Journal Entry to record the payment of payroll liabilities create is as follows:

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