Widmer Company had gross wages of $370,000 during the week ended June 17. The amount of wages subject to social security tax was $370,000, while the amount of wages subject to federal and state unemployment taxes was $30,000. Tax rates are as follows: Social security 6.0% Medicare 1.5% State unemployment 5.4% Federal unemployment 0.8% The total amount withheld from employee wages for federal taxes was $43,000. Required: a. Journalize the entry to record the payroll for the week of June 17.* b. Journalize the entry to record the payroll tax expense incurred for the week of June 17.* * Refer to the Chart of Accounts for exact wording of account titles.

Widmer Company had gross wages of $370,000 during the week ended June 17. The amount of wages subject to social security tax was $370,000, while the amount of wages subject to federal and state unemployment taxes was $30,000. Tax rates are as follows: Social security 6.0% Medicare 1.5% State unemployment 5.4% Federal unemployment 0.8% The total amount withheld from employee wages for federal taxes was $43,000. Required: a. Journalize the entry to record the payroll for the week of June 17.* b. Journalize the entry to record the payroll tax expense incurred for the week of June 17.* * Refer to the Chart of Accounts for exact wording of account titles.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

14. On March 21st Jamukha recorded salaries owed to employees and payroll taxes. Employee's gross salaries were $8,300. FICA tax was withheld at a rate of 7.65%. Federal income taxes (FIT) of $1,500 were withheld, and state income taxes (SIT) of $600 were withheld. The federal unemployment tax (FUTA) rate was 1%, and the state unemployment tax (SUTA) rate was 3.25% No cash has been paid yet, so record all the amounts due in the appropriate payable accounts.
Urban Window Company had gross wages of $310,000 during the week ended July 15. The amount of wages subject to social security tax was $310,000, while the amount of wages subject to federal and state unemployment taxes was $35,000. Tax rates are as follows: Social security 6.0% Medicare 1.5% State unemployment 5.4% Federal unemployment 0.6% The total amount withheld from employee wages for federal taxes was $47,000. Required: A. Journalize the entry to record the payroll for the week of July 15.* B. Journalize the entry to record the payroll tax expense incurred for the week of July 15.* *Refer to the Chart of Accounts for exact wording of account titles.
The payroll register for the Puhl Company for the week ended January 15th showed the following : Wages-$800,000 Federal Income Tax withheld- 160,000 Roth IRA deductions- 5,000 United Way deductions- 1,200 Union dues deductions- 850 All wages were subject to FICA (6.2% social security and 1.45% medicare tax). In addition , 620,000 of wages were subject to federal and state unemployment taxes. The state unemployment rate 5.4% and the federal unemployment is 0.8%. 1. Journalize the entry to record the payroll for the week of January 15th. 2. Journalize the entry to record the payroll tax expense for the week of January 15th
Gary Noll's gross earnings for the week were $3,400, his federal income tax withholding was $612, and his FICA total was $260. There were no state income taxes. What was Noll's net pay for the week? Net pay $
During the month of March, Sandhill Company's employees earned wages of $79,000. Withholdings related to these wages were $6,044 for Social Security (FICA), $13,100 for federal income tax, $5,500 for state income tax, and $530 for union dues. The company incurred no cost related to these earnings for federal unemployment tax, but incurred $1,140 for state unemployment tax. (a) Prepare the necessary March 31 journal entry to record wages expense and wages payable. Assume that wages earned during March will be paid during April. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Mar. 31 Debit T Credit
XYZ Company had gross wages of $355,000 during the week ended November 30. The amount of wages subject to social security tax was $285,000, while the amount of wages subject to federal and state unemployment taxes was $18,000. Tax rates are as follows. Social security 6.0% Medicare 1.5% State unemployment 5.4% Federal unemployment 0.8% The total amount withheld from employee wages for federal taxes was $66,900. The full amount of gross wages is subject to Medicare tax. a. Journalize the entry to record the payroll for the week of November 30.
On January 21, the column totals of the payroll register for Great Products Company showed that its sales employees had earned $14,710, its truck driver employees had earned $10,300, and its office employees had earned $8,240. 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, $3,990; and union dues, $540. 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. If necessary, round intermediate calculations and the final answer to the nearest cent. If an amount box does not require an entry, leave it blank.
Vulcra, Inc., has a semimonthly payroll of $67,960 on September 15, 20--. The total payroll is taxable under FICA Taxes-HI; $63,780 is taxable under FICA Taxes-OASDI; and $10,250 is taxable under FUTA and SUTA. The state contribution rate for the company is 4.1%. The amount withheld for federal income taxes is $9,932. The amount withheld for state income taxes is $1,448. Journalize the payment of the wages, and record the payroll taxes on September 15. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. Account Debit Credit Payment of wages fill in the blank 64ee8a05df97fa2_2 fill in the blank 64ee8a05df97fa2_3 fill in the blank 64ee8a05df97fa2_5 fill in the blank 64ee8a05df97fa2_6 fill in the blank 64ee8a05df97fa2_8 fill in the blank 64ee8a05df97fa2_9 fill in the blank 64ee8a05df97fa2_11 fill in the blank 64ee8a05df97fa2_12 fill in the blank 64ee8a05df97fa2_14 fill in the blank…
On January 15, the end of the first pay period of the year, North Company's employees earned $40,000 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $3,100 of federal income taxes, $593 of medical insurance deductions, and $230 of union dues. No employee earned more than $7,000 in this first period. Prepare the journal entry to record North Company's January 15 salaries expense and related liabilities. View transaction list Journal entry worksheet 1 Record the employee payroll for period. Note: Enter debits before credits. Date January 15 General Journal Debit Credit Record entry Clear entry View general journal
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
s
The employees of Boggus Ford earn wages of $15,600 for two weeks ending April 12. FIT taxes are $424 were withheld. The entire amount of wages is subject to the FICA taxes, BUT only $10,800 is taxable under the federal and state unemployment compensation laws. The state contribution rate of the employer is 3.9%. All employees are subject to state unemployment contribution rate of 0.5% on the April taxabe wages of $10,800, and the employees' contributions are to deducted by the employer. JOURNALIZE the payment of the wages, and record the payroll taxes, assuming the contributions of the employer and the employees are recorded in one account, SUTA taxes Payable. USE a table to correctly format the journal entries OR use Word to indent CR entries.