1) Introduction: Salaries and Tax deductions: • Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred. • Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees. • Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred. FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30% • Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%. To Determine: Gross pay, payroll deductions and Net pay

Question

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Answer 1

Question

Chapter 11, Problem 11SP

To determine

1)

Introduction:

Salaries and Tax deductions:

• Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

• Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.

• Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred. FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

• Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

To Determine:

Gross pay, payroll deductions and Net pay

To determine

2)

Introduction:

Salaries and Tax deductions:

• Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

• Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.

• Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred.

• FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

• Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

Journal Entries

• Journal entries are the first step in recording financial transactions and preparation of financial statements.

• These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

• Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Determine:

Journal Entry to record Gross pay, payroll deductions and Net pay

To determine

3)

Introduction:

Salaries and Tax deductions:

• Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

• Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.

• Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred. FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

• Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

Journal Entries

• Journal entries are the first step in recording financial transactions and preparation of financial statements.

• These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

• Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Determine:

Journal entry to record payroll tax expense

To determine

4)

Introduction:

Journal Entries

• Journal entries are the first step in recording financial transactions and preparation of financial statements.

• These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

• Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Determine:

Journal entry to record transaction of sale of merchandise with 4% sales tax

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no aiWhich of the following errors will not be detected by a trial balance?A. Debiting cash instead of accounts receivableB. Recording revenue twiceC. Failing to record a transactionD. A $100 debit matched with a $100 credit

Don't use chatgpt Which of the following errors will not be detected by a trial balance?A. Debiting cash instead of accounts receivableB. Recording revenue twiceC. Failing to record a transactionD. A $100 debit matched with a $100 credit

Answer 2

Question

Chapter 11, Problem 11SP

To determine

1)

Introduction:

Salaries and Tax deductions:

• Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

• Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.

• Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred. FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

• Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

To Determine:

Gross pay, payroll deductions and Net pay

To determine

2)

Introduction:

Salaries and Tax deductions:

• Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

• Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.

• Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred.

• FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

• Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

Journal Entries

• Journal entries are the first step in recording financial transactions and preparation of financial statements.

• These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

• Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Determine:

Journal Entry to record Gross pay, payroll deductions and Net pay

To determine

3)

Introduction:

Salaries and Tax deductions:

• Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

• Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.

• Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred. FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

• Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

Journal Entries

• Journal entries are the first step in recording financial transactions and preparation of financial statements.

• These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

• Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Determine:

Journal entry to record payroll tax expense

To determine

4)

Introduction:

Journal Entries

• Journal entries are the first step in recording financial transactions and preparation of financial statements.

• These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

• Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Determine:

Journal entry to record transaction of sale of merchandise with 4% sales tax

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 11, Problem 11SP

To determine

1)

Introduction:

Salaries and Tax deductions:

• Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

• Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.

• Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred. FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

• Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

To Determine:

Gross pay, payroll deductions and Net pay

To determine

2)

Introduction:

Salaries and Tax deductions:

• Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

• Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.

• Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred.

• FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

• Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

Journal Entries

• Journal entries are the first step in recording financial transactions and preparation of financial statements.

• These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

• Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Determine:

Journal Entry to record Gross pay, payroll deductions and Net pay

To determine

3)

Introduction:

Salaries and Tax deductions:

• Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

• Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.

• Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred. FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

• Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

Journal Entries

• Journal entries are the first step in recording financial transactions and preparation of financial statements.

• These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

• Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Determine:

Journal entry to record payroll tax expense

To determine

4)

Introduction:

Journal Entries

• Journal entries are the first step in recording financial transactions and preparation of financial statements.

• These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

• Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Determine:

Journal entry to record transaction of sale of merchandise with 4% sales tax

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 11, Problem 11SP

To determine

1)

Introduction:

Salaries and Tax deductions:

• Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

• Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.

• Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred. FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

• Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

To Determine:

Gross pay, payroll deductions and Net pay

To determine

2)

Introduction:

Salaries and Tax deductions:

• Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

• Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.

• Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred.

• FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

• Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

Journal Entries

• Journal entries are the first step in recording financial transactions and preparation of financial statements.

• These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

• Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Determine:

Journal Entry to record Gross pay, payroll deductions and Net pay

To determine

3)

Introduction:

Salaries and Tax deductions:

• Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

• Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.

• Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred. FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

• Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

Journal Entries

• Journal entries are the first step in recording financial transactions and preparation of financial statements.

• These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

• Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Determine:

Journal entry to record payroll tax expense

To determine

4)

Introduction:

Journal Entries

• Journal entries are the first step in recording financial transactions and preparation of financial statements.

• These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

• Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Determine:

Journal entry to record transaction of sale of merchandise with 4% sales tax

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 11, Problem 11SP

To determine

1)

Introduction:

Salaries and Tax deductions:

• Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

• Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.

• Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred. FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

• Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

To Determine:

Gross pay, payroll deductions and Net pay

To determine

2)

Introduction:

Salaries and Tax deductions:

• Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

• Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.

• Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred.

• FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

• Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

Journal Entries

• Journal entries are the first step in recording financial transactions and preparation of financial statements.

• These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

• Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Determine:

Journal Entry to record Gross pay, payroll deductions and Net pay

To determine

3)

Introduction:

Salaries and Tax deductions:

• Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

• Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.

• Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred. FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

• Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

Journal Entries

• Journal entries are the first step in recording financial transactions and preparation of financial statements.

• These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

• Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Determine:

Journal entry to record payroll tax expense

To determine

4)

Introduction:

Journal Entries

• Journal entries are the first step in recording financial transactions and preparation of financial statements.

• These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

• Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Determine:

Journal entry to record transaction of sale of merchandise with 4% sales tax

Answer 6

Chapter 11, Problem 11SP

To determine

1)

Introduction:

Salaries and Tax deductions:

• Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

• Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.

• Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred. FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

• Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

To Determine:

Gross pay, payroll deductions and Net pay

Answer 7

Chapter 11, Problem 11SP

To determine

1)

Introduction:

Salaries and Tax deductions:

• Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

• Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.

• Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred. FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

• Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

To Determine:

Gross pay, payroll deductions and Net pay

Answer 8

To determine

2)

Introduction:

Salaries and Tax deductions:

• Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

• Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.

• Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred.

• FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

• Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

Journal Entries

• Journal entries are the first step in recording financial transactions and preparation of financial statements.

• These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

• Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Determine:

Journal Entry to record Gross pay, payroll deductions and Net pay

Answer 9

To determine

2)

Introduction:

Salaries and Tax deductions:

• Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

• Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.

• Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred.

• FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

• Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

Journal Entries

• Journal entries are the first step in recording financial transactions and preparation of financial statements.

• These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

• Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Determine:

Journal Entry to record Gross pay, payroll deductions and Net pay

Answer 10

To determine

3)

Introduction:

Salaries and Tax deductions:

• Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

• Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.

• Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred. FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

• Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

Journal Entries

• Journal entries are the first step in recording financial transactions and preparation of financial statements.

• These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

• Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Determine:

Journal entry to record payroll tax expense

Answer 11

To determine

3)

Introduction:

Salaries and Tax deductions:

• Salaries expense for an employer comprises of cost of salaries paid and cost of employee benefits and payroll taxes incurred.

• Cost of employee benefits and payroll taxes incurred consist of FICA Tax i.e. Federal Insurance Contributions Act Tax, Unemployment tax, insurance expenses and retirement benefits expense incurred for the employees.

• Net salary is calculated as Gross Salary Less Cost of employee benefits and payroll taxes incurred. FICA Tax is calculated as 6.2 % Social Security and 1.45% Medicare totaling up to 7.65% for both employer and employee for a total FICA Tax of 15.30%

• Unemployment tax comprises of 6% Federal Unemployment Tax and State Unemployment Tax at 5.4%.

Journal Entries

• Journal entries are the first step in recording financial transactions and preparation of financial statements.

• These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

• Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Determine:

Journal entry to record payroll tax expense

Answer 12

To determine

4)

Introduction:

Journal Entries

• Journal entries are the first step in recording financial transactions and preparation of financial statements.

• These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

• Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Determine:

Journal entry to record transaction of sale of merchandise with 4% sales tax

Answer 13

To determine

4)

Introduction:

Journal Entries

• Journal entries are the first step in recording financial transactions and preparation of financial statements.

• These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

• Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Determine:

Journal entry to record transaction of sale of merchandise with 4% sales tax

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 11 - Prob. 1DQ Ch. 11 - Prob. 2DQ Ch. 11 - What are the three important questions concerning...Ch. 11 - Prob. 4DQ Ch. 11 - Prob. 5DQ Ch. 11 - Prob. 6DQ Ch. 11 - Prob. 7DQ Ch. 11 - Prob. 8DQ Ch. 11 - Prob. 9DQ Ch. 11 - Prob. 10DQ

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Chapter 11 Solutions