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 Prepare: Journal entry for expense of employees’ payroll.

Question

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Answer 1

Question

Chapter 11, Problem E11.19E

To determine

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 Prepare:

Journal entry for expense of employees’ payroll.

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Answer 2

Question

Chapter 11, Problem E11.19E

To determine

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 Prepare:

Journal entry for expense of employees’ payroll.

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Answer 3

Question

Chapter 11, Problem E11.19E

To determine

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 Prepare:

Journal entry for expense of employees’ payroll.

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Answer 4

Question

Chapter 11, Problem E11.19E

To determine

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 Prepare:

Journal entry for expense of employees’ payroll.

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Answer 5

Chapter 11, Problem E11.19E

To determine

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 Prepare:

Journal entry for expense of employees’ payroll.

Answer 6

Chapter 11, Problem E11.19E

To determine

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 Prepare:

Journal entry for expense of employees’ payroll.

Answer 7

Chapter 11, Problem E11.19E

To determine

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 Prepare:

Journal entry for expense of employees’ payroll.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 11 - Prob. 1QC Ch. 11 - On January 1, 2018, a business borrowed $18,000 on...Ch. 11 - Prob. 3QC Ch. 11 - Prob. 4QC Ch. 11 - Prob. 5QC Ch. 11 - Prob. 6QC Ch. 11 - Prob. 7QC Ch. 11 - Prob. 8QC Ch. 11 - Prob. 9QC Ch. 11 - McDaniel and Associates reported the following...

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