not use ai please United Company has experienced a decline in its employee base from 500 in the final month of 2025 to 200 in the final month of 2026.The weekly payroll also decreased from $1,000,000 to $400,000 for the noted periods. Payroll is paid weekly every Friday for thecurrent week. December 31, 2025 was a Monday, and December 31, 2026 is Friday. What conclusion can be drawn with respect to thesalaries and wages liability from December 31, 2025 to December 31, 2026?O The salaries and wages liability at December 31, 2026 will be the same.The salaries and wages liability at December 31, 2026 must be greater.O The salaries and wages liability at December 31, 2026 must be less.O It depends on the expectation regarding January 2027 salaries.

The company had way more employees at the end of 2025 (500) than at the end of 2026 (200), and their…

Answered: United Company has experienced a…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 7EB: Reviewing payroll records indicates that one-fifth of employee salaries that are due to be paid on...

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Ross Company pays all salaried employees on a Monday for the 5-day workweek ended the previous Friday. The last payroll recorded for the year ended December 31, 2022 was for the week ended December 25, 2022. The payroll for the week ended Friday, January 1, 2023 included regular weekly salaries of P80,000 and vacation pay of P25,000 for vacation time earned in 2022 but not taken by December 31, 2022. Ross had accrued a liability of P20,000 for vacation pay at December 31, 2021. In its December 31, 2022 statement of financial position, what amount should Ross report as accrued salary and vacation pay?
The following information relates to Fanning’s Electronics on December 31, 2011. The company, which uses the calendar year as its annual reporting period, initially records prepaid and unearned items in balance sheet accounts (assets and liabilities, respectively). The company’s weekly payroll is $8,750, paid each Friday for a five-day workweek. Assume December 31, 2011, fall on a Monday, but the employees will not be paid their wages until Friday, January 4, 2012. Eighteen months earlier, on July 1, 2010, the company purchased equipment that cost $20,000. Its useful life is predicted to be five years, at which time the equipment is expected to be worthless (zero salvage value). On October 1, 2011, the company agreed to work on a new housing development. The company is paid $120,000 on October 1 in advance of future installation of similar alarm system in 24 new homes. That amount was credit to the Unearned Services Revenue account. Between October 1 and December 31, work on 20…
February 18, 2022 is the end of the final pay period for the month. Schwartz has sold $8,900 of product during this pay period at a 3 percent commission. Complete the payroll register for the period's gross pay. Pay will be disbursed on February 22, 2022, and check numbers will continue from prior payroll. Hours over 80 (40 for Shangraw) will be considered overtime for eligible employees. The hours for the nonexempt employees are as follows: Hours worked 2/7-2/18 82 hours 80 hours 42 hours 81 hours Towle Long Name Shangraw Success (You) Required: Complete the payroll register for the period's gross pay. Pay will be disbursed on February 22, 2022. Check numbers will continue from the prior payroll period. Note: Round your answers for "Hourly Rate or Period Wage" to 5 decimal places and all other answers to 2 decimal places. Hours should be entered as whole numbers. P/R End Date Check Date Name Thomas Millen Avery Towle Charlie Long Mary Shangraw Kristen Lewis Joel Schwartz Toni Prevosti…
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The total payroll of Trolley Company for the manth of October, 2023 was $960,000, of which $780,000 represented amounts paid in excess of $118,500 to ertain employees. $500,000 represented amounts paid to employeres in excess of the $7,000 maximum subject to unemployment taxes. $96,000 of federal income taxes, $23, 500 of state inconne taxes and $18,000 of union dues were withheld from employee wages. The state unemployment tax is 1% the federal unemployment tax is 0.8%. The current F.1.C.A. tax is 7.65% on an employee's wages up to $118,500 and 1.45% in excess of $118,500. REQUIRED: Prepare the journal entries necessary to record Trolley's payroll for the month of October.
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In the Illustrative Case in this chapter, payroll transactions for Brookins Company were analyzed, journalized, and posted for the third quarter of the fiscal year. In this problem, you are to record the payroll transactions for the last quarter of the firm's fiscal year. The last quarter begins on April 1, 20--. Narrative of Transactions: Apr. 1. Paid the treasurer of the union the amount of union dues withheld from workers' earnings during March. 15. Payroll: $6,105. All wages and salaries taxable. Withheld $565 for federal income taxes, $107.32 for state income taxes, and $50 for union dues. 15. Paid the treasurer of the state the amount of state income taxes withheld from workers' earnings during the first quarter. 15. Electronically transferred funds to remove the liability for FICA taxes and employees' federal income taxes withheld on the March payrolls. 29. Payroll: $5,850. All wages and salaries taxable. Withheld $509 for federal income taxes,…
On January 21, the column totals of the payroll register for Great Products Company showed that its sales employees had earned 14,960, its truck driver employees had earned 10,692, and its office employees had earned 8,670. Social Security taxes were withheld at an assumed rate of 6.2 percent, and Medicare taxes were withheld at an assumed rate of 1.45 percent. Other deductions consisted of federal income tax, 3,975, and union dues, 560. Determine the amount of Social Security and Medicare taxes withheld and record the general journal entry for the payroll, crediting Salaries Payable for the net pay. All earnings were taxable. Round amounts to the nearest penny.
On January 21, the column totals of the payroll register for Great Products Company showed that its sales employees had earned 14,960, its truck driver employees had earned 10,692, and its office employees had earned 8,670. Social Security taxes were withheld at an assumed rate of 6.2 percent, and Medicare taxes were withheld at an assumed rate of 1.45 percent. Other deductions consisted of federal income tax, 3,975, and union dues, 560. Determine the amount of Social Security and Medicare taxes withheld and record the general journal entry for the payroll, crediting Salaries Payable for the net pay. All earnings were taxable. Round amounts to the nearest penny.
7. For the past 3 years, Xavier, Inc., has failed to accrue unpaid wages earned by workers during the last week of the year. (The wages expense was recorded in the following year, when paid.) The amounts omitted, which are considered material, were as follows: December 31, 2018 December 31, 2019 December 31, 2020 $56,000 51,000 64,000 The entry on 12/31/20 to correct for these omissions would include a a. credit to wage expense for $64,000. credit to retained earnings for $64,000.A c. credit to retained earnings for $56,000. d. debit to wage expense for $13,000.
According to a payroll register summary of Swifty Company, the amount of employees' gross pay in December was $852,000, of which $88,000 was not subject to Social Security taxes of 6.2% and $744,000 was not subject to state and federal unemployment taxes. (a) Determine the employer's payroll tax expense for the month, using the following rates: FICA 7.65%, state unemployment 5.40%, and federal unemployment 0.60%. (Round answer to 0 decimal places, e.g. 125.) Payroll tax expense $ eTextbook and Media List of Accounts
The total payroll of Trolley Company for the month of October, 2020 was $960,000, of which $180,000 represented amounts paid in excess of $128,400 to certain employees. $600,000 represented amounts paid to employees in excess of the $7,000 maximum subject to unemployment taxes. $180,000 of federal income taxes and $18,000 of union dues were withheld. The state unemployment tax is 1%, the federal unemployment tax is .8%, and the current F.I.C.A. tax is 7.65% on an employee's wages to $128,400 and 1.45% in excess of $128,400. What amount should Trolley record as payroll tax expense? $68,760 $73,440 $87,360 $79,560

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