Spirit Corporation reported the following payroll-related costs for the month of February. Gross pay (wages expense) Social Security and Medicare taxes Federal and state unemployment taxes i Workers' compensation insurance Group health and life insurance benefits Employee pension plan benefits Total payroll costs for February State income tax withholdings Federal income tax withholdings Social Security and Medicare tax withholdings Spirit's insurance premiums for workers' compensation and group health and life insurance were paid for in a prior period and recorded initially as prepaid insurance expense. Withholdings from employee wages in February were as follows. $273,000 20,885 15,500 8,200 9,000 26,950 $353,535 Req A to C a-c. Record Spirit's payroll entries for the month of February. d. Do the amounts withheld from Spirit's employees represent taxes levied on Spirit Corporation? Req D $ 5,875 56,000 20,885 Complete this question by entering your answers in the tabs below.

Q: Classify the Costs for Financial Statements?

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: State the meaning of Income and Expenditure Account.

A: Accounting:   It refers to the process of recording the financial transactions of an organization…

Q: Distinguish between Income and Expenditure Account and Receiptand Payment Account.

A: Difference between income and expenditure account and receipt and payment account:

Q: Explain Bill-and-hold concept.

A:

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.