Example 6-5The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be:DebitCreditWages Expense24,762.70FICA Taxes Payable-OASDI1,535.29FICA Taxes Payable-HI359.06FIT Payable3,714.00SIT Payable55.25Group Insurance Payments W/H54.70Cash19,044.40Example 6-7The journal entry to record the payroll tax entry from Figure 6.1 on pages 6-2 and 6-3 would be (assume a SUTA tax rate of 3.0%):DebitCreditPayroll Taxes2,785.81FICA Taxes Payable-OASDI1,535.29FICA Taxes Payable-HI359.06FUTA Taxes Payable148.58SUTA Taxes Payable742.88 a. Cal Ruther, an employer, is subject to FICA taxes but exempt from FUTA and SUTA taxes. During the last quarter of the year, his employees earned monthly wages of $8,500, all of which is taxable. The amount of federal income taxes withheld each month is $1,040. Journalize the payment of wages, and record the payroll tax on November 29.For a compound transaction, if an amount box does not require an entry, leave it blank. When required, round your answers to the nearest cent.DateAccountDebitCreditNov. 29Nov. 29b. Prior to posting the November 29 payroll transaction, FICA Taxes Payable-OASDI, FICA Taxes Payable-HI, and Employees FIT Payable had zero balances. Ruther must pay the FICA taxes and income taxes withheld on the November 29 payroll. Journalize the electronic transfer of the payroll taxes on December 16.If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.DateAccountDebitCreditDec. 16

The taxes paid by the employer to the government bodies on behalf of the employees are referred as…

The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be: Debit Credit Wages Expense 24,762.70 FICA Taxes Payable-OASDI 1,535.29 FICA Taxes Payable-HI 359.06 FIT Payable 3,714.00 SIT Payable 55.25 Group Insurance Payments W/H 54.70 Cash 19,044.40

The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be: Debit Credit Wages Expense 24,762.70 FICA Taxes Payable-OASDI 1,535.29 FICA Taxes Payable-HI 359.06 FIT Payable 3,714.00 SIT Payable 55.25 Group Insurance Payments W/H 54.70 Cash 19,044.40

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: In the credit terms of 3/15, n/45, the "3" represents the a. Number of days when the entire amount…

A: Credit terms: Credit terms are the terms of payment offered by the seller to the buyer.

Q: The entry to record the receipt of payment within the discount period on a sale of $4000 with terms…

A: DISCOUNTING PERIOD A firm makes sales to its customer and allows a discount for making payment…

Q: Items 21 to 27 are based on the following information: The balance sheet for the Litex Corporation…

A: Introduction A note receivable is a form of asset linked to an actual negotiable instrument that…

Q: Accounts receivable has a debit balance of $6,000, and the allowance for uncollectible accounts has…

A: The account receivables represents the amount due from the customers. The net account receivables…

Q: Allowance for Doubtful accounts beginning and ending balance of P45,000 and P64,000, respectively.…

A: Bad debts expense/doubtful account expense: Bad debts expense is recognized in the books of the…

Q: Accounts Payable, net of customers' debit balances of P400,000 300,000 Bank loan payable Bonds…

A: Cambodia's Financial Liabilities on December 31, 2019 Particulars Amount Accounts Payable…

Q: Peter's credit card statement for October showed these items: 10/1, previous balance, PI,080.15;…

A: answer with calculation are as follows:

Q: The June 30, 2019, balance sheet of Ram Technologies reports the following: Accounts…

A: Requirement No. 1 (i) Record the transactions in the journal: Date Particulars Debit Credit…

Q: Scarlet Company received an invoice for $67,000.00 that had payment terms of 2/5 n/30. If it made a…

A: Many companies provide their customers with trade credit which is the ability to receive the goods…

Q: In the credit terms 1/10, n/30, what does the "1" represent? Group of answer choices number of days…

A: Solution Concept Meaning of term credit terms 1/10, n/30, It means that if the payment is made…

Q: American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on…

A: When the benefits of compounding over time are taken into account, an effective annual interest rate…

Q: +9. Company A pays first semiannual interest payment of $ 2500. General Journal Page Date Account…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: The entry to record a payment on a $690 account within the 2% discount period would include a:…

A: Cash discount is recorded in cash account. Any other account will not be deducted by this amount.

Q: As of January 31, Hammond Auto Supply's general ledger balances, listed in alphabetical order of…

A: Trial balance means a statement which include all the debit or credit balances of accounts from…

Q: Summary information for a company's accounts receivable is provided below. Accounts receivable…

A: Allowance for uncollectible accounts, also known as the bad debt reserve, is a financial provision…

Q: Debit (Peso) Credit (Peso) 477 850.00 Accounts Notes Payable, due after 10 years Prepaid Rent Chen,…

A: Introduction: Balance sheet: All Assets and liabilities are shown in balance sheet. It tells the net…

Q: Using the following information: 12/31/19 $525,000 (40,000) $485,000 Accounts receivable Allowance…

A: 1) Calculation of Averages Receivable Opening Account Receivable= 525,000 Closing Account Receivable…

Q: On January 1, Year 2, the Accounts Receivable balance was $32,900 and the balance in the Allowance…

A: Net realizable value of accounts receivables is calculated by subtracting the Allowance for doubtful…

Q: Presented below are the receivables of Credicor Corporation as of December 31, 2020. Mr. A -…

A: What is meant by Factoring? Factor means a source of funding that provides the company value of…

Q: American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on…

A: The annual percentage rate(APR) is the interest rate (nominal rate) determined by the credit card…

Q: Calculate the Accounts Receivable Turnover for 2021 using the following information: Net Sales…

A: The ratio analysis helps to analyze the financial statements of the business on the basis of…

Q: If the company has net sales (120000) D., Accounts receivable (16000) , So the collection period…

A: Net sales = 120000 Accounts receivable = 16000

Q: 1. The total amount remitted to the BIR through the Tax Remittance Advice? 2. How much is the…

A: The Tax Remittance Advice (TRA) is an official document used by organizations to report and send…

Q: What is the charge to statement of profit or loss for receivables expense for the year?

A: Allowances for receivables can be defined as the amount of receivables which is expected to be…

Q: Using the following information: Accounts receivable Allowance Cash realizable value 12/31/20 $47500…

A: Cash realizable value is to calculated by deducting the value of the accounts that are uncollectible…

Q: Best Buy's recent annual report shows the following information related to accounts receivable:…

A: Accounts Receivables are the ledgers that represent sales made on accounts. This ledger is reflected…

Q: 1) Remaining VAT accounts of our company as of the end of January 2021 are as follows. 191…

A: Given, Deducible VAT (Input) = TL 10.000 Debit Calculated VAT (Output) = TL 8.000 Credit…

Q: Age of Receivables. (Classify them to: 0-30 days, 31-60, 61-90, and 90+ days) Afterwards, compute…

A: The calculation of Age of Receivables and past due ratio are shown hereunder : Past due ratio is…

Q: On January 1, 2021, the general ledger of Freedom Fireworks includes the following account…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub- parts for…

Q: What journal entry should be made to reflect the issuance of a $3,000 note to a creditor who has…

A: The issue is a journal entry that records the issuing of a $3,000 note to a customer. creditor who…

Q: The following information was taken from the accounts receivable records of Pina Colada Corporation…

A: OutstandingBalance PercentageEstimated to beUncollectible Estimatedto beUncollectible 0 –…

Q: the credit account statement below, the values of the annual percentage rate (APR), finance charge,…

A: Annual percentage is charged on annual basis and monthly is charged on monthly basis.

Q: 6. A cheque for RO 2,000 is presented in the clearing on the 20-01-2020 for payment when the balance…

A: Answer When balance in the bank account is insufficient then The overdraft facility may be used to…

Q: Calculate the missing information on the revolving credit account. Interest is calculated on the…

A: Calculate APR as follows: APR = Monthly rate×12=114%×12=1.25%×12=0.15=15% Calculate finance charge…

Q: What is the accounts payable total on $112,000 with 2/10 net 30

A: Note: 2/10, n/30: Here, 2 represent the discount rate if payment is made within ten days. And if…

Q: A. Suzie estimates uncollectible accounts to be 10% of accounts receivable (which does not include…

A: Accounts Receivables - Accounts Receivables are the amount unpaid by the customer for the service…

Q: If the Net Realisable Value of Accounts Receivable = $35,000 and the balance of Accounts Receivable…

A: Net realisable value of Accounts receivable = Accounts receivable - Allowance for Doubtful debts…

Q: What journal entry should be made to reflect the issuance of a $30,000 note to a creditor who has…

A: A magazine access is used to report a business transaction in a organization's accounting records. A…

Q: Calculate the credit given for the partial payment and the net amount due on the invoice (in $).…

A: The terms of sale 2/10, n/30 means, there will be a discount of 2%, if payment is made within 10…

Q: Use the following information from financial statements of Hamilton Inc. Information from Balance…

A: Cash is referred as the most liquid asset an organization or a company can have. It is considered to…

Q: Trade receivables (net of allowances of $45 at December 31, 2022 and $37 at December 31, 2021)…

A: Account receivable are the amount of balance of company money to be received in the future but are…

Q: Scarlet Company received an invoice for $80,000.00 that had payment terms of 3/5 n/30. If it made a…

A: Step 1: Since partial payment is made within the discount period, the discount is given to the…

Q: The books of Blue moon bank as on 31/12/2019 showed the following information: Rebate on bills…

A: Rebate on bills discounted means discount received in advance. It is portion of discount which…

Q: What is the total cash discount if an invoice dated March 3

A: Purchase date = March 31 Payment date = April 20 No. of days between March 31 to April 20 = 20

Q: During 2020, Jesse Jericho Enterprises Corporation recorded credit sales of $786,000. At the…

A: The receivable turnover ratio is computed by dividing the net credit sales during a period by the…

Q: Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on…

A: Compound = n = Monthly = 12Annual Percentage Rate = APR = 19%

Q: Accounts Debit (Peso) Credit (Peso) Notes Payable, due after 10 years Prepaid Rent Chen, Capital…

A: Introduction: Statement of financial position: All assets and liabilities are shown in statement of…

Question

100%

Example 6-5
The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be:
Debit
Credit
Wages Expense
24,762.70
FICA Taxes Payable-OASDI
1,535.29
FICA Taxes Payable-HI
359.06
FIT Payable
3,714.00
SIT Payable
55.25
Group Insurance Payments W/H
54.70
Cash
19,044.40
Example 6-7
The journal entry to record the payroll tax entry from Figure 6.1 on pages 6-2 and 6-3 would be (assume a SUTA tax rate of 3.0%):
Debit
Credit
Payroll Taxes
2,785.81
FICA Taxes Payable-OASDI
1,535.29
FICA Taxes Payable-HI
359.06
FUTA Taxes Payable
148.58
SUTA Taxes Payable
742.88

a. Cal Ruther, an employer, is subject to FICA taxes but exempt from FUTA and SUTA taxes. During the last quarter of the year, his employees earned monthly wages of $8,500, all of which is taxable. The amount of federal income taxes withheld each month is $1,040. Journalize the payment of wages, and record the payroll tax on November 29.
For a compound transaction, if an amount box does not require an entry, leave it blank. When required, round your answers to the nearest cent.
Date
Account
Debit
Credit
Nov. 29
Nov. 29
b. Prior to posting the November 29 payroll transaction, FICA Taxes Payable-OASDI, FICA Taxes Payable-HI, and Employees FIT Payable had zero balances. Ruther must pay the FICA taxes and income taxes withheld on the November 29 payroll. Journalize the electronic transfer of the payroll taxes on December 16.
If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
Date
Account
Debit
Credit
Dec. 16

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Payroll taxes

VIEW

Answer:

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Calculate the missing information on the revolving credit account. Interest is calculated on the unpaid or previous month's balance. (Round dollars to the nearest cent.) Monthly Annual Finance Purchases Payments and New Previous Periodic Percentage Rate (APR) Charge (in $) and Cash Balance Balance Rate Advances Credits (in $) (as a %) $1,027.61 % 1% $322.20 $400.00
What is the transaction's profit?
am. 107.
Assuming a 360-day year, the interest charged by the bank, at the rate of 6%, on a 90-day, discounted note payable of $106,407 is
7
Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For Year Ended December 31 Sales Cost of goods sold Other operating expenses Current Year $ 31,800 89,500 112,500. 10,700 278,500 $ 523,000 Interest expense Income tax expense Total costs and expenses Net income. Earnings per share $ 129,900 98,500 163,500 131,100 $ 523,000 Current Year $ 411,225 209,550 1 Year Ago $ 35,625 62,500 82,500 9,375 255,000 $ 445,000 The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: 4 12,100 9,525 $ 75,250 101,500 163,500 104,750 $ 445,000 $ 673,500 2 Years Ago 642,400 $ 31,100 $ 1.90 $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $51,250 83,500 163,500 79,250 $ 377,500 1 Year Ago $ 345,500…
The following is select financial statement information from Vortex Computing: Year Net Credit Sales Ending Accounts Receivable 2018 $1,557,200 $398,000 2019 $1,755,310 $444,400 2020 $1,865,170 $500,780 Compute the accounts receivable turnover ratios and the number of days’ sales in receivables ratios for 2019 and 2020 (round answers to two decimal places): 2019 Accounts Receivable Turnover = ["", "", "", ""] times. 2019 Days' Sales in Receivables = ["", "", "", ""] days. 2020 Accounts Receivable Turnover = ["", "", "", ""] times. 2020 Days' Sales in Receivables = ["", "", "", ""] days.
Echo Corporation had the following balances immediately prior to writing off a $100 uncollectible account: Current assets $ 30,000 Accounts receivable 3,300 Allowance for credit losses 300 Current liabilities 10,000 Required: Calculate the following amounts or ratios and determine the relationship between the amount or ratio before the write-off (x) with the amount or ratio after the write-off (y): Current ratio x equals y Net accounts receivable balance x equals y Gross accounts receivable balance x greather than Y
Joseph Co. reported the following financial information for 2020: Accounts receivable, January 1, 2020 P1,200 Accounts Receivable, December 31, 2020 250 Cash collection from customer on account 1,300 Joseph Co.’s service revenue rendered on account to clients amounted to
11. Please answer which is best for
The following information was taken from the accounts receivable records of Sarasota Corporation as at December 31, 2020: OutstandingBalance Percentage Estimatedto be Uncollectible 0 – 30 days outstanding $160,000 0.5% 31 – 60 days outstanding 66,000 2.5% 61 – 90 days outstanding 40,200 4.0% 91 – 120 days outstanding 20,600 6.5% Over 120 days outstanding 5,600 10.0% (a) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a credit balance of $1,200 prior to the adjustment (b) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a debit balance of $3,880 prior to the adjustment.
I need fast answer and show work without plagiarism please