Explanation Journal entry : Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically. Debit and credit rules: Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts. Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts. Federal Insurance Contributions Act (FICA) tax: Federal government imposes taxes on the employees’ pay to provide benefits to retired, old age, orphans, and disabled. This tax is also referred to as Social Security tax because the program is devised to benefit the society. FICA tax includes two components, OASDI (Old age, survivors, and disability insurance), and HI (health insurance). 6.2 % is levied as OASDI component, and 1.45% as HI component. So, the total of FICA tax rate is 7.65% ( 6.2 % + 1.45 % ) % for all the employees on the first $200,000 of earnings, and another 0.9% on the earnings above $200,000. Journalize the weekly payroll entry for CS . Date Account Titles and Explanation Post Ref. Debit ($) Credit ($) Wages Expense 2,400.00 FICA Taxes Payable–OASDI 148.80 FICA Taxes Payable–HI 34.80 Employee Federal Income Tax Payable 532.00 Employee State Income Tax Payable 117.04 Retirement Plan Contributions Payable 72.00 Garnishment Payable 125.00 Health Insurance Premiums Collected 110.00 Cash 1,260.36 (Record payment of wages) Table (1) Description: Wages Expense is an expense account. Since expenses and losses decrease equity, equity value is decreased, and a decrease in equity is debited. FICA Taxes Payable–OASDI is a liability account. The amount to be paid has increased, so liability increased, and an increase in liability is credited. FICA Taxes Payable–HI is a liability account. The amount to be paid has increased, so liability increased, and an increase in liability is credited. Employee Federal Income Tax Payable is a liability account. The amount to be paid has increased, so liability increased, and an increase in liability is credited. Employee State Income Tax Payable is a liability account. The amount to be paid has increased, so liability increased, and an increase in liability is credited

Cengagenowv2, 1 Term Printed Access Card For Bieg/toland's Payroll Accounting 2019, 29th

29th Edition

ISBN: 9781337619806

Author: Bernard J. Bieg, Judith Toland

Publisher: South-Western College Pub

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Question

Chapter 6, Problem 7PB

To determine

Journalize the payroll and payroll tax entries for CS.

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Chapter 6 Solutions

Cengagenowv2, 1 Term Printed Access Card For Bieg/toland's Payroll Accounting 2019, 29th

Ch. 6 - The totals from the payroll register of Olt...Ch. 6 - Olt Companys gross payroll for the week of January...Ch. 6 - _____ 1. 1. Employees earnings record A. Expense...Ch. 6 - Prob. 1QR Ch. 6 - For what reason are distribution columns sometimes...Ch. 6 - Prob. 3QR Ch. 6 - Prob. 4QR Ch. 6 - Prob. 5QR Ch. 6 - Prob. 6QR Ch. 6 - Prob. 7QR

Ch. 6 - What portions of an employees take-home pay are...Ch. 6 - Prob. 9QR Ch. 6 - Prob. 10QR Ch. 6 - Prob. 11QR Ch. 6 - What must the employer do with unclaimed...Ch. 6 - What special accounts must usually be opened in...Ch. 6 - Prob. 14QR Ch. 6 - Prob. 15QR Ch. 6 - Prob. 16QR Ch. 6 - What accounts are debited and credited when an...Ch. 6 - Prob. 18QR Ch. 6 - Prob. 19QR Ch. 6 - Prob. 20QR Ch. 6 - Prob. 1QD Ch. 6 - Prob. 2QD Ch. 6 - Prob. 3QD Ch. 6 - Prob. 1PA Ch. 6 - Prob. 2PA Ch. 6 - a. Cal Ruther, an employer, is subject to FICA...Ch. 6 - The employees of Donnelly Music Company earn total...Ch. 6 - Vulcra, Inc., has a semimonthly payroll of 67,000...Ch. 6 - Prob. 6PA Ch. 6 - Prob. 7PA Ch. 6 - The employees of Pelter Company earn wages of...Ch. 6 - The following information pertains to a weekly...Ch. 6 - Prob. 10PA Ch. 6 - On December 31, 20--, Karmansky Company needed to...Ch. 6 - Kelsey Gunn is the only employee of Arsenault...Ch. 6 - Prob. 13PA Ch. 6 - At the end of April, Hernandez Company had a...Ch. 6 - Prob. 15PA Ch. 6 - In the Illustrative Case in this chapter, payroll...Ch. 6 - Prob. 1PB Ch. 6 - Prob. 2PB Ch. 6 - Prob. 3PB Ch. 6 - The employees of Carson Bakery Company earn total...Ch. 6 - Purnell, Inc., has a semimonthly payroll of 53,900...Ch. 6 - Adams, Inc., pays its employees weekly wages in...Ch. 6 - Prob. 7PB Ch. 6 - The employees of Portonegra Company earn wages of...Ch. 6 - The following information pertains to a weekly...Ch. 6 - Prob. 10PB Ch. 6 - Prob. 11PB Ch. 6 - Prob. 12PB Ch. 6 - Prob. 13PB Ch. 6 - At the end of June, Morton Company had a balance...Ch. 6 - Prob. 15PB Ch. 6 - In the Illustrative Case in this chapter, payroll...Ch. 6 - Frank Flynn is the payroll manager for Powlus...

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