mployees performed services in 20Y8, but the wages were not paid until 20Y9. During which year would the wages expense be reported on the income statement under (a) the cash basis? (b) the accrual basis?

mployees performed services in 20Y8, but the wages were not paid until 20Y9. During which year would the wages expense be reported on the income statement under (a) the cash basis? (b) the accrual basis?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Journalize the transactions shown

A: Calculate Salary expense = Gross salary - Tax payables - Insurance premium payables.

Q: Total payroll expense was recorded as $750,000 on the income statement. The payroll payable account…

A: Statement of cash flows: Cash flow statement is also known as statement of cash flows. It is a…

Q: paid a salary and earned $48,500 in 2021, what is the gross monthly earnings? What is the net…

A: The answer has been mentioned below.

Q: begin accessing money from their 403b

A: Section 403b is a retirement plan that also called ( tax sheltered annuity plans ) or TSA. This plan…

Q: Refer to Exhibit 6-1. Journalize the adjustment for accrued wages for the following Monday, which…

A: Accrued expenses: Accrued expenses are the expenses that have been incurred but have not been paid…

Q: Target's accounting record show the following totals for the month of April: Salaries FICA taxes…

A: Lets understand the basics.Gross pay is a pay provided to employee for working in organization. It…

Q: The payroll register or Longboat Company indicates $5,400 of social security withheld and $1,350 of…

A: Compute state and federal unemployment compensation taxes as shown below:

Q: The following information relates to CA Enterprises payroll for the month of July: Wages Income tax…

A: Payroll taxes refer to those taxes paid by both employer and employee in order to fund the employee…

Q: What is included in the journal entry to record the employer amount of the payroll? Assume gross…

A: Solution- Payroll journal entries are used to record the compensation paid to employees. These…

Q: how do compute thesocial security taxable earnings?

A: Federal income taxes (FIT) are imposed in USA. Tax is calculated by applying tax rates which…

Q: During the month of January, an employer incurred the following payroll taxes: FICA Social Security…

A: Working notes: Payroll tax expense = FICA social security tax + FICA Medicare tax + FUTA taxes +…

Q: The payroll journal for Northport Enterprises, Inc., is shown. Social Security and Medicare are…

A: Income tax refers to the amount charged by the government from the individual and organizations on…

Q: What was Noll’s net pay for the week? Net pay $enter Net pay in dollars eTextbook and Media…

A: Payroll accounting: The process of payroll accounting includes the computation and payment of…

Q: An employee has a net payroll amount of $5,064.50. What is the correct journal entry to record this…

A: The journal entries are a crucial step of the accounting process as it records the accounting…

Q: The payroll register of Heritage Co. indicates $4,800 of social security withheld and $1,200 of…

A: Answer:- Journal entry meaning:- The act of maintaining or creating records of any transaction,…

Q: Assume the following payroll information for Jane Smith: Gross pay $10,000, Income tax $2,500, EI…

A: The objective of the question is to determine the journal entries to record the employer amounts of…

Q: a. Social security taxes are 4.2% of monthly gross pay up to a cumulative total pay of $106,800 for…

A: Case 1: Cumulative Gross Pay at October 31 = $15,570Social Security Tax:The Social Security tax rate…

Q: Under the Revised Chart of Accounts (2019), the following are the expense accounts for: Utility…

Q: ABC Company determined that it has an obligation relating to employees' rights to receive salaries…

A: In the given question it is given that the payment for future absences is probable and at the year…

Q: Mark Anthony works for Woolworths Ltd and has taken his long-service leave this period. He was paid…

A: Expense refers to the amount incurred by the business. These expenses can be of any type namely…

Q: your client, failed to record accrued salaries expense of P 50,000 as of December 31, 2022. Based…

A: Since you have posted question with multiple sub-parts , we will do the first three sub-parts for…

Q: This problem continues the process of preparing the Kipley Company's Employee Payroll Register for…

A: Employee payroll register is a book in which all the records of all the employees for the particular…

Q: The following information is noted on the year end payroll register for an employee employed with a…

A: Payroll Register: It is the slip or register in which the pay and allowances of the employees are…

Q: Gross pay is: Deductions withheld by an employer Salaries after taxes are deducted Total…

A: The amount of an employee's paycheck that is left over after all payroll deductions, including taxes…

Q: Bonita Consulting Inc's gross salaries for the biweekly period ended August 24 were $15,000.…

A: Journal is the primary book where transactions are originally recorded. Further, a journal entry is…

Q: es Palouse Company completed the salary and wage payroll for the month of March. The payroll…

A: Employer portion of payroll taxes (FICA Taxes) is to be debited to payroll tax expense account

Q: Sandler Company completed the following two transactions. The annual accounting period endsDecember…

A: Journal: Recording of a business transactions in a chronological order.

Q: During the month of January, an employee earned $5, 800 of salary. Withholdings from the employee's…

A: Payroll: It refers to a list of company's employees who are compensated in the form of salaries and…

Q: This problem continues the computing and recording employee payroll for the Olney Company for the…

A: Federal Unemployment Taxes (FUTA) Implementation of Federal Unemployment Taxes (FUTA) at the time of…

Q: The payroll register of Heritage Co. indicates $1,500 of social security withheld and $375 of…

A: The objective of the question is to record the payroll for the period in the company's journal. This…

Q: . The payroll register of Seaside Architecture Company indicates $970 of social security and $257 of…

A: Lets understand the basics. Journal is required to make to record event and transaction that…

Q: allowance for doubtful accounts was P1,000,000 at December 31, and P900,000 at January 1, 2020. For…

A: Allowance for doubtful debt: It can be defined as a contra asset account that reduces the amount of…

Q: Salaries expense FICA-Social Security taxes withheld FICA-Medicare taxes withheld Federal income…

A: Accrued expense means an expense that has been incurred but not paid yet.It is a liability for the…

Q: Marin Company's gross pay for the week ended August 22 totalled $71,200, from which $3,880 was…

A: Payroll: It implies a process of making payment to the employees of the business in the form of…

Q: Indicate if assessable income has been derived and when it was derived in the following situations.…

A: The employee received = $1500 on 29th June. Assessable income will be derived in the period in which…

Q: On the printed "Worksheet" page, journalize the transactions the information from the "Transactions"…

A: Date Account Name Debit Credit Jan .15 Salaries Expense $1500 FICA Tax Expense ( 7.7%) $116…

Q: During the month of January, an employee earned $4,800 of salary. Withholdings from the employee's…

A: JOURNAL ENTRIES Journal Entry is the First stage of Process of Accounting. Journal is the Process of…

Q: Nix Company paid a premium of $420 for workers’ compensation insurance based on the estimated…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Which of the following does not describe a purpose of the employee's earnings records? a. They are…

A: Employee earnings record is the record maintained by the employee that contains information about…

Q: employeus contributions of 5.1% of their gross pay and pay Employment Insurance premiums of 1.62% of…

A: Employer also contribute to contribution plan record as expense

Concept explainers

Payroll Entries

Payroll is a comprehensive record of employees that are paid by the company. Payroll classifies employees into various categories according to their function and pays scale (basic wage, allowance, income tax, other taxes, employee loans, etc.). Payroll processes form the bedrock of every organization as it contains sensitive information on the ‘wage and paycheck’ portion of the company’s strength—its employees. The organization needs to keep a track of the employees currently on the payroll, the net payout for the company, the record of transactions related to the employees including deductions and payroll taxes to identify the liability and its effect on the balance sheet (and other financial statements). Payroll records also include qualitative factors such as the conduct of the employee.

Question

Employees performed services in 20Y8, but the wages were not paid until 20Y9. During which year would the wages expense be reported on the income statement under (a) the cash basis? (b) the accrual basis?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

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

To match revenues and expenses properly, should the expense for employee vacation pay be recorded in the period during which the vacation privilege is earned or during the period in which the vacation is taken?
Assuming no employees are subject to ceilings for their earnings, Harris Company has the following information for the pay period of January 15-31. Use this information to answer the question that follow. Gross payroll Social security rate Medicare rate Federal income tax withheld Federal unemployment tax rate State unemployment tax rate Assuming that all wages are subject to federal and state unemployment taxes, the employer's payroll tax expense would be a. $2,870 b. $1,370 c. $750 Od. $620 $10,000 6.0% 1.5% $1,800 0.8% 5.4%
Katie Pereira and Ferro Schwartz are employees of Free Star, Inc. In February 2017, Katie's gross pay was $5,500, and Ferro's gross pay was $14,900. All earnings are subject to FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%. Which of the following would be included in the entry to record the salaries expense for February? OA. a credit to FICA-OASDI Taxes Payable for $1,264.80 OB. a debit to Salaries Payable to employees for $1,264.80 OC. a debit to FICA-Medicare Taxes Payable for $1,264.80 OD. a credit to Salaries Expense for $1,264.80
Employers can deduct unpaid renumeration for tax purposes in a taxation year a. if paid within 180 days of the taxation year. b. if paid within 250 days of the taxation year. c. if paid 365 days of the taxation year. d. if paid within two years of the taxation year.
Sheffield Consulting Inc's gross salaries for the biweekly period ended August 24 were $12,500. Deductions included $743 for CPP, $235 for El, and $6,248 for income tax. The employer's payroll costs were $743 for CPP and $329 for El. Prepare journal entries to record (a) the payment of salaries on August 24; (b) the employer payroll costs on August 24, assuming they will not be remitted to the government until September; and (c) the payment to the government on September 15 of all amounts owed. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) No. Date Account Titles and Explanation Debit Cred (a) (b) 15 (b) (c)
The payroll register of Seaside Architecture Company indicates $920 of social security and $256 of Medicare tax withheld on total salaries of $15,000 for the period. Federal withholding for the period totaled $3,260. Required: Prepare the journal entry for the period's payroll. Refer to the Chart of Accounts for exact wording of account titles. Prepare the journal entry for the period's payroll on December 31. Refer to the Chart of Accounts for exact wording of account titles.
Compute the employer's payroll benefit expense based on the following totals found on a completed payroll register dated November 15. Gross pay = $41,700.00 Deductions: Income Tax = $6,650.00; El = $1,251.00; CPP = $2,046.00 Journalize the information from a completed payroll register dated November 15. ● ●
The payroll register of Chen Heritage Co. indicates $2,220 of social security withheld and $555 of Medicare tax withheld on total salaries of $37,000 for the period. Federal withholding for the period totaled $6,290. Retirement savings withheld from employee paychecks were $2,650 for the period. Provide the journal entry for the period's payroll. If an amount box does not require an entry, leave it blank.
The annual accounting period ends December 31. On December 31, calculated the payroll, which indicates gross earnings for wages ($88,000), payroll deductions for income tax ($8,800), payroll deductions for FICA ($6, 600), payroll deductions for American Cancer Society ($3, 300). employer contributions for FICA (matching), and state and federal unemployment taxes ($660). Employees were paid in cash, but payments for the corresponding payroll deductions have not yet been made and employer taxes have not yet been recorded Collected rent revenue of $6, 150 on December 10 for office space that Lakeview rented to another business. The rent collected was for 30 days from December 11 to January 10 and was credited in full to Unearned Rent Revenue. Required: Complete the required journal entries for the above transactions as shown below: Prepare the entries required on December 31 to record payroll. Prepare the journal entry for the collection of rent on December 10. Prepare the adjusting…