Richie Riches, a clothing resale store, employs one salesperson, Danielle Hopeton. Hopeton's straight-time wage is $30 per hour, with time-and-a-half pay for hours above 40. Richie Riches withholds income tax (20%), FICA-OASDI (6.2%), and FICA-Medicare (1.45%) from Hopeton's pay. Richie Riches also pays payroll taxes for FICA-OASDI (6.2%), FICA-Medicare (1.45%), and state and federal unemployment (5.4% and 0.6%, respectively). During the week ended December 26, Hopeton worked 50 hours. Prior to this week, she had earned $1,600. Read the requirements. b. Record the entry that Richie Riches would make for the employer payroll taxes accrual related to Hopeton. (Round all amounts to the nearest whole dollar.) Accounts and Explanation Debit Credit Date b. c. Record the entry that Richie Riches would make for payment of all payroll taxes (employee and employer related). (Prepare a single compound journal entry. Round I amounts to the nearest whole dollar.) Date Accounts and Explanation Credit Requirement 3. How much was Richie Riches' total payroll expense for the week? The company's total payroll expense for the week was Debit
Richie Riches, a clothing resale store, employs one salesperson, Danielle Hopeton. Hopeton's straight-time wage is $30 per hour, with time-and-a-half pay for hours above 40. Richie Riches withholds income tax (20%), FICA-OASDI (6.2%), and FICA-Medicare (1.45%) from Hopeton's pay. Richie Riches also pays payroll taxes for FICA-OASDI (6.2%), FICA-Medicare (1.45%), and state and federal unemployment (5.4% and 0.6%, respectively). During the week ended December 26, Hopeton worked 50 hours. Prior to this week, she had earned $1,600. Read the requirements. b. Record the entry that Richie Riches would make for the employer payroll taxes accrual related to Hopeton. (Round all amounts to the nearest whole dollar.) Accounts and Explanation Debit Credit Date b. c. Record the entry that Richie Riches would make for payment of all payroll taxes (employee and employer related). (Prepare a single compound journal entry. Round I amounts to the nearest whole dollar.) Date Accounts and Explanation Credit Requirement 3. How much was Richie Riches' total payroll expense for the week? The company's total payroll expense for the week was Debit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
pt. 2 to the previous question.
Transcribed Image Text:Richie Riches, a clothing resale store, employs one salesperson, Danielle Hopeton. Hopeton's straight-time wage is $30 per hour, with time-and-a-half pay for hours above 40. Richie Riches withholds income tax (20%), FICA-OASDI (6.2%),
and FICA-Medicare (1.45%) from Hopeton's pay. Richie Riches also pays payroll taxes for FICA-OASDI (6.2%), FICA-Medicare (1.45%), and state and federal unemployment (5.4% and 0.6%, respectively). During the week ended
December 26, Hopeton worked 50 hours. Prior to this week, she had earned $1,600.
Read the requirements.
b. Record the entry that Richie Riches would make for the employer payroll taxes accrual related to Hopeton. (Round all amounts to the nearest whole dollar.)
Accounts and Explanation
Debit
Credit
Date
b.
c. Record the entry that Richie Riches would make for payment of all payroll taxes (employee and employer related). (Prepare a single compound journal entry. Round all amounts to the nearest whole dollar.)
Accounts and Explanation
Credit
Date
C.
Requirement 3. How much was Richie Riches' total payroll expense for the week?
The company's total payroll expense for the week was
Debit
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