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to e un for at se en food and was a tea

FINANCIAL ACCOUNTING
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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Windsor Hardware's payroll for November is summarized below. Payroll Factory Sales Administrative Total Wages Due FICA $120,000 $120,000 32,000 38,000 $190,000 32,000 38,000 $190,000 Amount Subject to Payroll Taxes Unemployment Tax State Federal $41,000 4,000 $45,000 $41,000 4,000 $45,000 At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee's wages to $142,800 and 1.45% in excess of $142,800. Of the $190,000 wages subject to FICA tax, $22,000 of the sales wages is in excess of $142,800. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $16,800 for factory, $7,700 for sales, and $6,800 for administrative.
Transcribed Image Text:Windsor Hardware's payroll for November is summarized below. Payroll Factory Sales Administrative Total Wages Due FICA $120,000 $120,000 32,000 38,000 $190,000 32,000 38,000 $190,000 Amount Subject to Payroll Taxes Unemployment Tax State Federal $41,000 4,000 $45,000 $41,000 4,000 $45,000 At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee's wages to $142,800 and 1.45% in excess of $142,800. Of the $190,000 wages subject to FICA tax, $22,000 of the sales wages is in excess of $142,800. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $16,800 for factory, $7,700 for sales, and $6,800 for administrative.
Prepare a schedule showing the employer's total cost of wages for November by function. Wages $ FICA Taxes Federal U.T. State U.T. Total Cost $ Payroll Tax Expense FICA Taxes Payable Show Transcribed Text FUTA Taxes Payable SUTA Takes Payable Salaries and Wages Expense Factory (To record employer payroll taxes) Sales Payroll: Withholding Taxes Payable FICA Taxes Payable Wages Payable 120,000 FICA Taxes Payable FUTA Taxes Payable 9.180 328 130,533 1,025 $ $ (To record salaries and wages paid and the employee payroll deductions) Payroll Tax Expense Sales 32,000 1,084 32 100 33,216 c $ $ Administrative 10500 32000 1340 38,000 2.907 0 0 40,907 $ $ 9180 320 1000 7000 1208 23792 1208 32 Total
Transcribed Image Text:Prepare a schedule showing the employer's total cost of wages for November by function. Wages $ FICA Taxes Federal U.T. State U.T. Total Cost $ Payroll Tax Expense FICA Taxes Payable Show Transcribed Text FUTA Taxes Payable SUTA Takes Payable Salaries and Wages Expense Factory (To record employer payroll taxes) Sales Payroll: Withholding Taxes Payable FICA Taxes Payable Wages Payable 120,000 FICA Taxes Payable FUTA Taxes Payable 9.180 328 130,533 1,025 $ $ (To record salaries and wages paid and the employee payroll deductions) Payroll Tax Expense Sales 32,000 1,084 32 100 33,216 c $ $ Administrative 10500 32000 1340 38,000 2.907 0 0 40,907 $ $ 9180 320 1000 7000 1208 23792 1208 32 Total
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