Sandhill Company has the following data for the weekly payroll ending January 31.. Employee L. Helton R. Kenseth D. Tavaras M 8 8 Jan. 31 9 T 8 8 12 Hours W 12 8 8 T F 8 8 8 10 8 S 3 Date Account Titles and Explanation 5 9 0 Hourly Rate Federal Income Tax Withholding Health Insurance $34 $12 16 13 37 58 Debit Employees are paid 1½ times the regular horly rate for all hours worked in excess of 40 hours per week. FICA taxes are 7.65% (the 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of 1.45% on all salaries and wages). Sandhill Company is subject to 5.4% state unemployment taxes and 0.6% federal unemployment taxes on the first $7,000 of gross earnings. $10 Prepare the journal entry to record Sandhill's payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 15.25.) 25 Credit 25
Sandhill Company has the following data for the weekly payroll ending January 31.. Employee L. Helton R. Kenseth D. Tavaras M 8 8 Jan. 31 9 T 8 8 12 Hours W 12 8 8 T F 8 8 8 10 8 S 3 Date Account Titles and Explanation 5 9 0 Hourly Rate Federal Income Tax Withholding Health Insurance $34 $12 16 13 37 58 Debit Employees are paid 1½ times the regular horly rate for all hours worked in excess of 40 hours per week. FICA taxes are 7.65% (the 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of 1.45% on all salaries and wages). Sandhill Company is subject to 5.4% state unemployment taxes and 0.6% federal unemployment taxes on the first $7,000 of gross earnings. $10 Prepare the journal entry to record Sandhill's payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 15.25.) 25 Credit 25
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A
Transcribed Image Text:Sandhill Company has the following data for the weekly payroll ending January 31.
Employee
L. Helton
R. Kenseth
M
8
8
D. Tavaras 9
Jan. 31
T
8
8
12
Hours
W
12
8
8
T
8
8
8
F
10
8
S
3
Date Account Titles and Explanation
5
9 0
Hourly Rate
$12
16
13
Federal Income Tax Withholding Health Insurance
$34
37
58
Employees are paid 1½ times the regular hcrly rate for all hours worked in excess of 40 hours per week. FICA taxes are 7.65% (the
7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of
1.45% on all salaries and wages). Sandhill Company is subject to 5.4% state unemployment taxes and 0.6% federal unemployment
taxes on the first $7,000 of gross earnings.
Debit
$10
Prepare the journal entry to record Sandhill's payroll tax expense. (Credit account titles are automatically indented when amount is
entered. Do not indent manually. Round answers to 2 decimal places, e.g. 15.25.)
25
Credit
25
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