ACCOUNTING PRINCIPLES 222 5/16 >C<
2nd Edition
ISBN: 9781323461525
Author: Horngren
Publisher: PEARSON C
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 11, Problem S11.7SE
Computing payroll amounts considering FICA tax ceilings
Lori Waverly works for MRK all year and earns a monthly salary of $12,000. There is no overtime pay. Lori’s income tax withholding rate is 20% of gross pay. In addition to payroll taxes, Lori elects to contribute 4% monthly to United Way. MRK also deducts $125 monthly for co-payment of the health insurance premium. As of September 30, Lori had $108,000 of cumulative earnings.
Requirements
- Compute Lori’s net pay for October.
- Journalize the accrual of salaries expense and the payments related to the employment of Lori Waverly.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Giana Bailey works for JMK all year and eams a monthly salary of $11.800 There is no overtima,pay Giana's income tax withholding rate is 10% of gross pay In
addition to payroll taxes, Giana elects to contribute 3% monthly to United Way. JMK also deductss275 monthly for co-payment of the health insurance premium. As of
September 30, Giana had $106,200 of cumulative eamings
O (Cick the icon to view payroll tax rate information)
Requirements
1. Compute Giana's net pay for October.
2. Journalize the accrual of salaries expense and the payments related to the employment of Giana Bailey.
Requirement 1. Compute Giana's net pay for October. (Round all amounts to the nearest cent)
Withholding deductions
Net (take-home) pay
Frie
Choose trom any list or enter any number in the input fields and then click Check Answer
Sienna Watson works for MRK all year and earns a monthly salary of $12,200. There is no overtime pay. Sienna's income tax withholding rate is 12% of gross pay. In addition to payroll taxes, Sienna elects to contribute 1% monthly to United Way
for co-payment of the health insurance premium. As of September 30, Sienna had $122,000 of cumulative earnings.
(Click the icon to view payroll tax rate information.)
Read the requirements.
Requirements
Requirement 1. Compute Sienna's net pay for October. (Round all amounts to the nearest cent.)
Gross pay
Withholding deductions:
Employee income tax
$ 12,200.00
1. Compute Sienna's net pay for October
2. Journalize the accrual of salaries expense and the payment related to the
employment of Sienna Watson
Employee OASDI tax
Employee Medicare tax
Employee contribution to United Way
Employee health insurance
Total withholdings
Net (take-home) pay
$ 1,464.00
675.80
176.90
122.00
300.00
2,738.70
$ 9,461,30
Requirement 2. Journalize the accrual of…
Lucy Rose works at College of Fort Worth and is paid $12 per hour for a 40-hour workweek and time-and-a-half for hours above 40.
A (Click the icon to view payroll tax rate information.)
Read the requirements.
Requirement 2. Rose is single, and her income tax withholding is 15% of total pay. Rose's only payroll deductions are payroll taxes. Compute Rose's net (take-home) pay for the week. Assume Rose's earnings to date are less
than the OASDI limit. (Round all amounts to the nearest cent.)
Withholding deductions:
Net (take-home) pay
Requirement 3. Journalize the accrual of wages expense and the payments related to the employment of Lucy Rose. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Begin with the entry to accrue wages expense and payroll withholdings for Lucy Rose. (Round all amounts to the nearest cent.)
Date
Accounts and Explanation
Debit
Credit
Chapter 11 Solutions
ACCOUNTING PRINCIPLES 222 5/16 >C<
Ch. 11 - Prob. 1QCCh. 11 - On January 1, 2018, a business borrowed $18,000 on...Ch. 11 - Prob. 3QCCh. 11 - Prob. 4QCCh. 11 - Prob. 5QCCh. 11 - Prob. 6QCCh. 11 - Prob. 7QCCh. 11 - Prob. 8QCCh. 11 - Prob. 9QCCh. 11 - McDaniel and Associates reported the following...
Ch. 11 - Prob. 1RQCh. 11 - Prob. 2RQCh. 11 - Prob. 3RQCh. 11 - Prob. 4RQCh. 11 - What do short-term notes payable represent?Ch. 11 - 6. Coltrane Company has a $5,000 note payable that...Ch. 11 - Prob. 7RQCh. 11 - Prob. 8RQCh. 11 - Prob. 9RQCh. 11 - Prob. 10RQCh. 11 - Prob. 11RQCh. 11 - Prob. 12RQCh. 11 - Prob. 13RQCh. 11 - Prob. 14RQCh. 11 - Prob. 15RQCh. 11 - Prob. S11.1SECh. 11 - Prob. S11.2SECh. 11 - Recording unearned revenue On June 1, Guitar...Ch. 11 - Accounting for a note payable On December 31,...Ch. 11 - Determining current portion of long-term note...Ch. 11 - Computing and journalizing an employee’s total pay...Ch. 11 - Computing payroll amounts considering FICA tax...Ch. 11 - Prob. S11.8SECh. 11 - Computing bonus payable On December 31, Peterson...Ch. 11 - Prob. S11.10SECh. 11 - Prob. S11.11SECh. 11 - Prob. S11.12SECh. 11 - Prob. S11.13SECh. 11 - Prob. E11.14ECh. 11 - Prob. E11.15ECh. 11 - Prob. E11.16ECh. 11 - Prob. E11.17ECh. 11 - Prob. E11.18ECh. 11 - Prob. E11.19ECh. 11 - Prob. E11.20ECh. 11 - Prob. E11.21ECh. 11 - Prob. E11.22ECh. 11 - Prob. E11.23ECh. 11 - Prob. E11.24ECh. 11 - Journalizing and posting liabilities The general...Ch. 11 - Computing and journalizing payroll amounts Lee...Ch. 11 - Prob. P11.27APGACh. 11 - Journalizing liability transactions The following...Ch. 11 - Computing times-interest-earned ratio The income...Ch. 11 - Journalizing and posting liabilities The general...Ch. 11 - Prob. P11.31BPGBCh. 11 - Prob. P11.32BPGBCh. 11 - Prob. P11.33BPGBCh. 11 - Prob. P11.34BPGBCh. 11 - Prob. P11.35CPCh. 11 - Prob. 11.1DCCh. 11 - Prob. 11.2DCCh. 11 - Ethical Issue 11-1 Many small businesses have to...Ch. 11 - > Financial Statement Case 11-1 Details about a...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Payrex Co. has six employees. All are paid on a weekly basis. For the payroll period ending January 7, total employee earnings were 12,500, all of which were subject to SUTA, FUTA, Social Security, and Medicare taxes. The SUTA tax rate in Payrexs state is 5.4%, but Payrex qualifies for a rate of 2.0% because of its good record of providing regular employment to its employees. Other employer payroll taxes are at the rates described in the chapter. REQUIRED 1. Calculate Payrexs FUTA, SUTA, Social Security, and Medicare taxes for the week ended January 7. 2. Prepare the journal entry for Payrexs payroll taxes for the week ended January 7. 3. What amount of payroll taxes did Payrex save because of its good employment record?arrow_forwardJOURNAL ENTRIES FOR PAYMENT OF EMPLOYER PAYROLL TAXES Angel Ruiz owns a business called Ruiz Construction Co. He does his banking at Citizens National Bank in Portland, Oregon. The amounts in his general ledger for payroll taxes and the employees withholding of Social Security, Medicare, and federal income tax payable as of April 15 of the current year are as follows: Journalize the quarterly payment of the employee federal income taxes and Social Security and Medicare taxes on April 15, 20--, and the payments of the FUTA and SUTA taxes on April 30, 20--.arrow_forwardCompute the net pay for both Kayla and Paula for the first week in Januaryarrow_forward
- Vaibhavarrow_forward9 Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of $8,988. The Federal Insurance Contributions Act (FICA) tax for social security is 6.2% of the first $137,700 of employee earnings each calendar year and the Federal Insurance Contributions Act (FICA) tax rate for Medicare is 1.45% of all earnings. The Federal Unemployment Taxes (FUTA) tax rate of 0.6% and the State Unemployment Taxes (SUTA) tax rate of 5.4 % are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from her earnings was $1.491.37. Her net pay for the month is: (Round your intermediate calculations to two decimal places.) ts 01.34.34 Book Multiple Choice $7,700.21 $6.939.37 $6,809.04 $6.375.04arrow_forwardA4arrow_forward
- Maze Company has one employee that is paid $1,000 weekly. All of the employee's wages are subject to social security and Medicare taxes. Federal and state income tax withholding on the employee's pay are $100 and $40, respectively. Federal and state unemployment taxes amount to $8 and $56, respectively. What is the employer's weekly payroll tax expense? Group of answer choices $1,280.50 $280.50 $140.50 $1,000.00arrow_forwardMartin Jackson receives an hourly wage rate of $15, with time and a half for all hours worked in excess of 40 hours during a week. Payroll data for the current week are as follows: hours worked, 44; federal income tax withheld, $310; social security tax rate, 6.0%; and Medicare tax rate, 1.5%. What is the net amount to be paid to Jackson? a.$328.25 b.$958.25 c.$938.25 d.$690.00arrow_forward-arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
College Accounting (Book Only): A Career ApproachAccountingISBN:9781305084087Author:Cathy J. ScottPublisher:Cengage Learning
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
College Accounting, Chapters 1-27 (New in Account...AccountingISBN:9781305666160Author:James A. Heintz, Robert W. ParryPublisher:Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781305084087
Author:Cathy J. Scott
Publisher:Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
College Accounting, Chapters 1-27 (New in Account...
Accounting
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:Cengage Learning
What Is And How To Calculate FICA Taxes Explained, Social Security Taxes And Medicare Taxes; Author: Whats Up Dude;https://www.youtube.com/watch?v=fzK3KDDYCQw;License: Standard Youtube License