College Accounting (Book Only): A Career Approach
12th Edition
ISBN: 9781305084087
Author: Cathy J. Scott
Publisher: Cengage Learning
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Question
Chapter 7, Problem 4PB
1.
To determine
Complete Company B’s payroll register.
2.
To determine
Journalize the transaction to record the payroll.
3.
To determine
Journalize the transaction to record the payment of wages by assuming that the company has transferred funds from payroll to its cash- payroll bank account.
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A company has one employee. All wages for September are subject to 6.2% FICA Social Security taxes and 1.45% FICA Medicare
taxes. The company's FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee.
Gross Pay through August Gross Pay for September
31
$6,500
$ 1,900
Prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related liabilities.
Enter answers in the tabs below.
Payroll Taxes General
Expense
Journal
Prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related liabilities.
Note: Round answers to 2 decimals.
No
1
Date
X Answer is not complete.
September 30
General Journal
Salaries expense
FICA-Social security taxes payable
FICA-Medicare taxes payable
Salaries payable
< Payroll Taxes Expense
X
General Journal
Debit
1,900.00
Credit
117.80
27.55
1,754.65
Parry Paint LLC started operations on January 1, 2019. It had the following payroll transactions during the
year.
Jan 15 - Paid an employee B. Vaughn gross pay of $2,000 for January 1-15 salary, calculated as
follows:
Deductions
FICA Medicare
Gross Pay
Net Pay
Income taxes
15%
FICA Social
Total
deductions
Security
6.2%
1.45%
$2,000
The company matches FICA deductions.
Required:
a. Calculate B. Vaughn's net pay and journalize the entries to record her payroll.
b. Prepare journal entries to record the above transactions. Show necessary calculations.
Assuming situation (a), prepare the employers September 30 journal entry to record the employers payroll taxes expense and it’s related liabilities.
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 - Prob. 1ECh. 7 - Prob. 2ECh. 7 - Prob. 3ECh. 7 - Prob. 4ECh. 7 - Prob. 5ECh. 7 - On January 21, the column totals of the payroll...Ch. 7 - Precision Labs has two employees. The following...Ch. 7 - Prob. 8ECh. 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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