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 8, Problem 2DQ
To determine
Define the necessary
a. Record the payroll.
b. Record the employer’s payroll tax contributions.
c. Pay the payroll.
d. Pay the state and federal
e. Pay the FICA and federal income tax withholdings.
f. Pay the state income tax withholding.
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Students have asked these similar questions
Which of the following journal entries is recorded in a general journal for the payment of the State Unemployment Tax?
a. A debit to State Unemployment Tax Payable and a credit to State Unemployment Tax Expense
b. A debit to Cash and a credit to State Unemployment Tax Payable
c. A debit to State Unemployment Tax Expense and a credit to State Unemployment Tax Payable
d. A debit to State Unemployment Tax Payable and a credit to Cash
1. Employees are subject to taxes withheld from their paychecks. a. List the federal taxes withheld form
most employee's paychecks. b. Give the title of the accounts credited by amounts withheld. c. Social
security tax d. Federal unemployment compensation tax e. Sate unemployment compensation tax
·
Prepare and use a payroll register including Social Security and Medicare withholdings.
Use =IF and =ROUND to design the Social Security tax and union dues formulas.
Record journal entries for payroll, employer's tax liability, and payment of payroll taxes.
Identify behavior patterns among payroll taxes over time.
Alter the worksheet to include an additional employee.
Create a chart showing the percentage of an employee's gross pay that is withheld for taxes
and other such deductions, and how much is left over as net pay.
PROBLEM DATA
Reno Graphics has five employees, and they are paid at the end of each month. Payroll data for
November are as follows:
Employee
Jones
Miller
Smith
Williams
Zlotorzynski
Gross Pay for
November
$9,000
1,530
1,210
12,000
4,200
Federal Income
Tax Withheld
$1,948
137
89
Cumulative Gross Pay at
October 31
$?
15,570
6,550
2,788
661
Other information (using 2011 rates) is as follows:
a. Social security taxes are 4.2% of monthly gross pay up to a cumulative…
Chapter 8 Solutions
College Accounting (Book Only): A Career Approach
Ch. 8 - Prob. 1QYCh. 8 - Prob. 2QYCh. 8 - Prob. 3QYCh. 8 - Prob. 4QYCh. 8 - Prob. 5QYCh. 8 - Prob. 6QYCh. 8 - Prob. 7QYCh. 8 - Prob. 8QYCh. 8 - Prob. 9QYCh. 8 - Prob. 1DQ
Ch. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Prob. 9DQCh. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - On September 30, Cody Companys selected account...Ch. 8 - On September 30, Hilltop Companys selected payroll...Ch. 8 - Prob. 8ECh. 8 - Prob. 1PACh. 8 - Prob. 2PACh. 8 - Prob. 3PACh. 8 - Prob. 4PACh. 8 - Prob. 5PACh. 8 - Prob. 1PBCh. 8 - Prob. 2PBCh. 8 - Prob. 3PBCh. 8 - Prob. 4PBCh. 8 - Prob. 5PBCh. 8 - TruGreen is the worlds largest lawn and landscape...Ch. 8 - Between the end of one month and the 15th day of...
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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
- When a credit is made to federal income taxes withholding payable account related to taxes withheld from an employee, the corresponding debit is made to a. Wages Expense b. Taxes Expense c. Taxes Payable d. Casharrow_forwardWhat accounts are debited and credited when an employer records the electronic transfer of FICA taxes and federal income taxes that have been withheld?arrow_forwardWhich of the following is considered an employer payroll tax? A. FICA Medicare B. FUTA C. SUTA D. A and B only E. B and C only F. A, B, and Carrow_forward
- An employer may withhold portions of an employee's total earnings for a.state and county sales taxes. b.state unemployment taxes. c.local property taxes. d.federal unemployment taxes. e.charitable contributions.arrow_forwardWhich of the following accounts is debited to record the payment of employees' state income tax withholding? a. Employees' State Income Tax Payable b. Employees' State Income Tax Received c. Capital d. Casharrow_forwardTo calculate the debit to payroll tax expense in recording the employer's payroll taxes the following would be included: Group of answer choices Social Security Tax, Medicare Tax, State and Federal Unemployment Tax State and Federal Unemployment Taxes Social Security Tax and Medicare Taxarrow_forward
- Recording employee payroll deductions may involve: Multiple Choice Liabilities to the employer. Liabilities to federal and state governments. Expenses for state unemployment. Expenses for the gross wages and salaries. Expenses for the employer portion of any medical insurance.arrow_forwardWhich of the following journal entries is recorded for the payment of employees' state income tax withholding? a. A debit to Employees' State Income Tax Received and a credit to Cash b. A debit to Employees' State Income Tax Payable and a credit to Cash c. A debit to Cash and a credit to Employees' State Income Tax Received d. A debit to Cash and a credit to Employees' State Income Tax Payablearrow_forward1. What loan from the federal government given to individual states is used to provide unemployment benefits to state residents? Answer: A. SUTA Advances B. FUTA Advances C. Title XII Advances D. Title 15 Advances 2. The SUTA tax rate is determined by an employer’s _____. Answer: A. credit reduction B. FUTA tax rate C. experience rating D. Medicare tax rate 3. Identify each item as associated with Form 1099-NEC, Form 1096, or both. A. Displays earnings for one individual Form 1099-NEC Form 1096 Both B. Displays earnings for multiple individuals Form 1099-NEC Form 1096 Both C. Requires a signature Form 1099-NEC Form 1096…arrow_forward
- sarrow_forwardIdentify the list of accounts below that would normally all have a debit balance. Multiple Choice Payroll Taxes Expense, Salaries Expense, Workers' Compensation Insurance Expense Worker's Compensation Insurance Expense, Prepaid Insurance, Medicare Tax Payable Worker's Compensation Insurance Payable, Salaries Payable, Salaries Expense Social Security Tax Payable, Medicare Tax Payable, Employee Income Tax Payablearrow_forwardThe payroll of Buffalo Company for September 2019 is as follows. Total payroll was $468,000, of which $104,000 is exempt from Social Security tax because it represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 (the maximum for both federal and state unemployment tax) was $406,000. Income taxes in the amount of $76,500 were withheld, as was $9,800 in union dues. The state unemployment tax is 3.5%, but Buffalo Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee's wages to $128,400 and 1.45% in excess of $128,400. No employee for Buffalo makes more than $135,000. The federal unemployment tax rate is 0.8% after state credit. Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No…arrow_forward
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