College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Chapter 7, Problem 4E
To determine
Identify the six errors in the given payroll register of Company B.
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The following information as to earnings and deductions for the two-week pay period ended March 26, was taken from Stake Technology Inc.'s payroll records.
a) Fill in the table below assuming that the income tax rate is 17%, FICA Social Security is calculated at 6.20%, and FICA Medicare at 1.45%. Please make sure your final answer(s)
are accurate to 2 decimal places.
Employee
Bonnie Northrup...
Frank Levens
Kevin Smith
Total
102
119
Gross pay Federal income taxes FICA Social Security FICA Medicare Total deductions Net pay
600
700
850
2,150
144.50
365.50
b) Prepare the journal entry to record the payroll. Enter an appropriate description, and enter the date in the format dd/mmm (i.e., 15/Jan).
Date
General Journal
Account/Explanation
Page G1
PR Debit Credit
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.
Keller Systems, Inc., completed payroll transactions during the period January 1 to February 15 of the current year. Payroll tax rates are as follows: social security, 6.2%; Medicare, 1.45%; FUTA, 0.8%; SUTA, 5.4%. No total earnings have exceeded the tax base for calculating unemployment taxes. Keller Systems is a monthly schedule depositor for payroll taxes. Journalize the transactions shown in Question Assets on page 14 of the cash payments journal and page 13 of the general journal given in the Working Papers. Source documents are abbreviated as follows: memorandum, M.
Paid cash for December’s payroll tax liability. Withheld taxes from December payrolls: employee income tax, $790.00; social security tax, $1,557.44; and Medicare tax, $364.24. C621.
Paid cash for semimonthly payroll. Total earnings, $6,420.00; withholdings: employee income tax, $410.00; health insurance premiums, $360.00 (calculate the social security and Medicare deductions). C622.
Recorded…
Chapter 7 Solutions
College Accounting (Book Only): A Career Approach
Ch. 7 - Prob. 1QYCh. 7 - Which of the following taxes are not withheld from...Ch. 7 - Calculate an employees total earnings if the...Ch. 7 - Prob. 4QYCh. 7 - Prob. 5QYCh. 7 - Prob. 6QYCh. 7 - When is the payroll register updated? a. Annually...Ch. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQ
Ch. 7 - Explain the difference between gross earnings and...Ch. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Determine the gross pay for each employee listed...Ch. 7 - Prob. 2ECh. 7 - Prob. 3ECh. 7 - Prob. 4ECh. 7 - For tax purposes, assume that the maximum taxable...Ch. 7 - On January 21, the column totals of the payroll...Ch. 7 - Prob. 7ECh. 7 - Assume that the employees in Exercise 77 are paid...Ch. 7 - Prob. 1PACh. 7 - Prob. 2PACh. 7 - Prob. 3PACh. 7 - Prob. 4PACh. 7 - Prob. 5PACh. 7 - Prob. 1PBCh. 7 - Prob. 2PBCh. 7 - Prob. 3PBCh. 7 - Prob. 4PBCh. 7 - Prob. 5PBCh. 7 - Attracting and retaining the best employees is...Ch. 7 - Southern Company pays its employees weekly by...Ch. 7 - Prob. 3A
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- The totals line from Nix Companys payroll register for the week ended March 31, 20--, is as follows: Payroll taxes are imposed as follows: Social Security tax, 6.2%; Medicare tax, 1.45%; FUTA tax, 0.6%; and SUTA tax, 5.4%. REQUIRED 1. a. Prepare the journal entry for payment of this payroll on March 31, 20--. b. Prepare the journal entry for the employers payroll taxes for the period ended March 31, 20--. 2. Nix Company had the following balances in its general ledger before the entries for requirement ( 1 ) were made: a. Prepare the journal entry for payment of the liabilities for federal income taxes and Social Security and Medicare taxes on April 15, 20--. b. Prepare the journal entry for payment of the liability for FUTA tax on April 30, 20--. c. Prepare the journal entry for payment of the liability for SUTA tax on April 30, 20--.arrow_forwardPayrex 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_forwardClick the Chart sheet tab. On the screen is a chart of the four payroll taxes that a company might incur in total during the year. The four taxes are federal unemployment, state unemployment, Social Security, and Medicare. By the behaviors shown on the chart, identify below which of the four taxes each represents. Series 1 _____ Series 2 _____ Series 3 _____ Series 4 _____ When the assignment is complete, close the file without saving it again. TICKLERS (optional) Worksheet. A new employee was hired during November and was mistakenly omitted from the payroll register. The employees last name is Zuckerman, and his gross pay for November is 1,300. Add the new employee to the PR5 worksheet and include all standard withholding rates in computing net pay. Federal income tax withheld is 101. He is a union member. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as PRT. Chart. Using the PR4 file, prepare a 3-D pie chart to show the percentage of an employees gross pay that is withheld for taxes, Social Security, and so on, and how much is left over as net pay. Use Smith as your example. Complete the Chart Tickler Data Table and use it as a basis for preparing the chart. Enter your name somewhere on the chart. Save the file again as PR4. Print the chart.arrow_forward
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