Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 13, Problem 13.8P
Payroll Taxes Payable. Jackson Corporation employs 45 production workers and pays them all the same salary Jackson employs 10 administrative staff personnel and pays them all the same salary The following annual information is available for each employee group.
Description | Production | Administrative |
Salaries and wages | $4,500,000 | $1,050,675 |
Federal income tax rate | 18% | 22% |
State and local income tax rate | 6% | 9% |
Federal |
25% | 2.5% |
State unemployment tax - effective (wage cap per employee = $7,000) | 1.5% | 1.5% |
Required
- a. Prepare the
journal entry to record the annual payroll. - b. Prepare the journal entry to pay the liability for accrued salaries.
- c. Prepare the journal entry necessary to record Jackson’s payroll tax expense for the annual payroll.
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Peyton Company's payroll for the year is$737,910. Of this amount, 472,120 is for wages paid in excess of of 7,000 to each individual employee. The SUTA rate in Peyton Company's state is 2.9% on the first 7,000 of each employees earnings.. Computte
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The FICA Social Security tax rate is 6.2% on the first $142,800 earned, and FICA Medicare is 1.45% on all earnings Federal unemployment tax is 06% on the first $7,000 earned by each employee The SUTA
tax rate for New Company is 5 7% on the test $7,000 of employce earnings for state unemployment purposes (Round to the nearest cent as needed)
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Chapter 13 Solutions
Intermediate Accounting
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How JOURNAL ENTRIES Work (in Accounting); Author: Accounting Stuff;https://www.youtube.com/watch?v=Y-_Q3rANyxU;License: Standard Youtube License