Stark Company has five employees. Employees paid by the hour earn $12 per hour for the regular 40-hour workweek and $18 per hour beyond the 40 hours per week. Hourly employees are paid every two weeks, but salaried employees are paid monthly on the last biweekly payday of each month. FICA Social Security taxes are 6.2% of the first $137,700 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. The company has a benefits plan that includes medical insurance, life insurance, and retirement funding for employees. Under this plan, employees must contribute 5% of their gross income as a payroll withholding, which the company matches with double the amount. Following is the partially completed payroll register for the biweekly period ending August 31, which is the last payday of August. a. Complete this payroll register by filling in all cells for the pay period ended August 31. Prepare the August 31 journal entry to: b. Record the accrued biweekly payroll and related liabilities for deductions. c. Record the employer's cash payment of the net payroll of part b. d. Record the employer's payroll taxes i e. Including the contribution to the benefits plan. 1. Pay all liabilities (except for the net payroll in part c) for this biweekly period. Complete this question by entering your answers in the tabs below. Req A Complete this payroll register by filling in all cells for the pay period ended August 31. Note: Round your answers to 2 decimal places. Do not round your intermediate calculations. Employee (Excludes Anthony Kathleen $ Nichole Zoey Req B to E Gracie Cumulative Pay Totals Current Period) 133,700.00 Salary 6,600.00 Salary 16.500.00 6,550.00 Current-Period Gross Pay Pay Pay Type Hours 5,700.00 S 169,050.00 Regular Overtime Regular Overtime Regular Overtime 38008 80 17 32 Gross Pay S 8,000.00 1,040.00 FIT Withholding SIT Withholding $ 2,400.00 350.00 160.00 40.00 110.00 30.00 180.00 50.00 40.00 10.00 FUTA SUTA $ 2,890.00 $ 480.00 FICA S.S. Employee FICA S.S. Employer 0.00 $ 0.00 FICA Medicare Employee FICA Medicare Employer 0.00 $ 0.00 Rea B to F 0.00 0.00 Employee Plan Withholding Employer Plan Expense $ 52.00 104.00 52.00 104.00 Employee Net Pay (Current Period) $ 0.00

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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Stark Company has five employees. Employees paid by the hour earn $12 per hour for the regular 40-hour workweek and $18 per hour
beyond the 40 hours per week. Hourly employees are paid every two weeks, but salaried employees are paid monthly on the last
biweekly payday of each month. FICA Social Security taxes are 6.2% of the first $137,700 paid to each employee, and FICA Medicare
taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. The company
has a benefits plan that includes medical insurance, life insurance, and retirement funding for employees. Under this plan, employees
must contribute 5% of their gross income as a payroll withholding, which the company matches with double the amount. Following is
the partially completed payroll register for the biweekly period ending August 31, which is the last payday of August.
a. Complete this payroll register by filling in all cells for the pay period ended August 31.
Prepare the August 31 journal entry to:
b. Record the accrued biweekly payroll and related liabilities for deductions.
c. Record the employer's cash payment of the net payroll of part b.
d. Record the employer's payroll taxes i
e. Including the contribution to the benefits plan.
1. Pay all liabilities (except for the net payroll in part c) for this biweekly period.
Complete this question by entering your answers in the tabs below.
Req B to E
Complete this payroll register by filling in all cells for the pay period ended August 31.
Note: Round your answers to 2 decimal places. Do not round your intermediate calculations.
Req A
Employee (Excludes
Kathleen
Anthony
Nichole
Zoey
Gracie
Cumulative Pay
Current Period)
Totals
$ 133,700.00 Salary
16,500.00
6,600.00 Salary
6,550.00
Current-Period Gross Pay
5,700.00
Pay Pay
Type Hours
$ 169,050.00
Regular
Overtime
88008
Regular
Overtime
Regular 32
Overtime
17
Gross Pay
S 8,000.00
1,040.00
FIT
Withholding
SIT
Withholding
$ 2,400.00
350.00
160.00
40.00
110.00
30.00
180.00
50.00
40.00
10.00
FUTA
480.00
SUTA
$ 2,890.00 $
< Req A
0.00
0.00
FICA S.S.
Employee
FICA S.S.
Employer
$
0.00
0.00
FICA
Medicare
Employee
FICA
Medicare
Employer
$
Req B to E >
Employee Plan
Withholding
Employer Plan
Expense
0.00 $
0.00
52.00
104.00
52.00
104.00
Employee
Net Pay
(Current
Period)
$ 0.00
Transcribed Image Text:Stark Company has five employees. Employees paid by the hour earn $12 per hour for the regular 40-hour workweek and $18 per hour beyond the 40 hours per week. Hourly employees are paid every two weeks, but salaried employees are paid monthly on the last biweekly payday of each month. FICA Social Security taxes are 6.2% of the first $137,700 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. The company has a benefits plan that includes medical insurance, life insurance, and retirement funding for employees. Under this plan, employees must contribute 5% of their gross income as a payroll withholding, which the company matches with double the amount. Following is the partially completed payroll register for the biweekly period ending August 31, which is the last payday of August. a. Complete this payroll register by filling in all cells for the pay period ended August 31. Prepare the August 31 journal entry to: b. Record the accrued biweekly payroll and related liabilities for deductions. c. Record the employer's cash payment of the net payroll of part b. d. Record the employer's payroll taxes i e. Including the contribution to the benefits plan. 1. Pay all liabilities (except for the net payroll in part c) for this biweekly period. Complete this question by entering your answers in the tabs below. Req B to E Complete this payroll register by filling in all cells for the pay period ended August 31. Note: Round your answers to 2 decimal places. Do not round your intermediate calculations. Req A Employee (Excludes Kathleen Anthony Nichole Zoey Gracie Cumulative Pay Current Period) Totals $ 133,700.00 Salary 16,500.00 6,600.00 Salary 6,550.00 Current-Period Gross Pay 5,700.00 Pay Pay Type Hours $ 169,050.00 Regular Overtime 88008 Regular Overtime Regular 32 Overtime 17 Gross Pay S 8,000.00 1,040.00 FIT Withholding SIT Withholding $ 2,400.00 350.00 160.00 40.00 110.00 30.00 180.00 50.00 40.00 10.00 FUTA 480.00 SUTA $ 2,890.00 $ < Req A 0.00 0.00 FICA S.S. Employee FICA S.S. Employer $ 0.00 0.00 FICA Medicare Employee FICA Medicare Employer $ Req B to E > Employee Plan Withholding Employer Plan Expense 0.00 $ 0.00 52.00 104.00 52.00 104.00 Employee Net Pay (Current Period) $ 0.00
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