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 3PB
To determine
Complete Construction B’s Part 1 of Form 941 for the third quarter.
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For the third quarter of the year, Johnson Company, 415 Circle Avenue, Chicago, Illinois 60652, received Form 941 from the Internal Revenue Service. The identification number of Johnson Company is 91-4213171. Its payroll for the quarter ended September 30 is as follows:
TAXABLE EARNINGS
DEDUCTIONS
NAME
TOTAL EARNINGS
SOCIAL SECURITY
MEDICARE
FEDERAL INCOME TAX
SOCIAL SECURITY TAX
MEDICARE TAX
Brown, D. D.
16,629.00
16,629.00
16,629.00
2,494.00
1,031.00
241.12
Carey, L. R.
18,528.00
18,528.00
18,528.00
2,780.00
1,148.74
268.66
Domzalski, T. P.
14,665.00
14,665.00
14,665.00
2,100.00
909.23
212.64
Grisson, R. O.
13,721.00
13,721.00
13,721.00
2,058.00
850.70
198.95
Tyler, J. L.
17,406.00
17,406.00
17,406.00
2,510.00
1,079.17
252.39
Valdez, K. R.
15,287.00
15,287.00
15,287.00
2,295.00
947.79
221.66
96,236.00
96,236.00
96,236.00
14,237.00
5,966.63
1,395.42
The company has had six employees throughout the year. Assume that the FICA Social Security (employer)…
Francisco Company has 10 employees, each of whom earns $2,700 per month and is paid on the last day of each month. All 10 have been employed continuously at this amount since January 1. On March 1, the following accounts and balances exist in its general ledger.
FICA—Social Security Taxes Payable, $3,348; FICA—Medicare Taxes Payable, $784. (The balances of these accounts represent total liabilities for both the employer's and employees' FICA taxes for the February payroll only.)
Employees' Federal Income Taxes Payable, $6,750 (liability for February only).
Federal Unemployment Taxes Payable, $324 (liability for January and February together).
State Unemployment Taxes Payable, $2,916 (liability for January and February together).
The company had the following payroll transactions.
Mar.
15
Issued check payable to Swift Bank, a federal depository bank authorized to accept employers' payments of FICA taxes and employee income tax withholdings. The $10,882 check is in payment of…
Francisco Company has 10 employees, each of whom earns $2,500 per month and is paid on the last day of each month. All 10 have been employed continuously at this amount since January 1. On March 1, the following accounts and balances exist in its general ledger.
FICA—Social Security Taxes Payable, $3,100; FICA—Medicare Taxes Payable, $726. (The balances of these accounts represent total liabilities for both the employer's and employees' FICA taxes for the February payroll only.)
Employees' Federal Income Taxes Payable, $6,250 (liability for February only).
Federal Unemployment Taxes Payable, $300 (liability for January and February together).
State Unemployment Taxes Payable, $2,700 (liability for January and February together).
The company had the following payroll transactions.
Mar.
15
Issued check payable to Swift Bank, a federal depository bank authorized to accept employers' payments of FICA taxes and employee income tax withholdings. The $10,076 check is in payment of…
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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- Payrex 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_forwardThe names of the employees of Hogan Thrift Shop are listed on the following payroll register. Employees are paid weekly. The marital status and the number of allowances claimed are shown on the payroll register, along with each employee’s weekly salary, which has remained the same all year. Complete the payroll register for the payroll period ending December 20, the 51st weekly payday. The state income tax rate is 2% of total earnings, the city income tax rate is 1.5% of the total gross earnings, and the wage-bracket method is used for federal income taxes.arrow_forwardThe names of the employees of Hogan Thrift Shop are listed on the following payroll register. Employees are paid weekly. The marital status and the number of allowances claimed are shown on the payroll register, along with each employee's weekly salary, which has remained the same all year. Complete the payroll register for the payroll period ending December 20, 20--, the 51st weekly payday. The state income tax rate is 2% of total earnings, the city income tax rate is 1.5% of the total gross earnings, and the wage-bracket method is used for federal income taxes. Hint: If wages are higher than the last amount on the appropriate wage-bracket table, the percentage method must be used. Enter all amounts as positive numbers. Round your calculations and final answers to the nearest cent. Hogan Thrift ShopPayroll Register Deductions FOR PERIOD ENDING December 20, 20-- (a) FICA Employee Name MaritalStatus No. of W/HAllowances TotalEarnings OASDI HI (b)FIT (c)SIT…arrow_forward
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- Lakeview Company completed the following two transactions. The annual accounting period endsDecember 31.a. On December 31, calculated the payroll, which indicates gross earnings for wages ($80,000),payroll deductions for income tax ($8,000), payroll deductions for FICA ($6,000), payrolldeductions for American Cancer Society ($3,000), employer contributions for FICA (matching), and state and federal unemployment taxes ($600). Employees were paid in cash, but payments for the corresponding payroll deductions have not yet been made and employer taxeshave not yet been recorded.b. Collected rent revenue of $6,000 on December 10 for office space that Lakeview rented toanother business. The rent collected was for 30 days from December 11 to January 10 and wascredited in full to Unearned Revenue.Required:1. Give the journal entries to record payroll on December 31.2. Give ( a ) the journal entry for the collection of rent on December 10 and ( b ) the adjusting journal entry on December 31.3.…arrow_forwardA paving company has 24 employees, 15 with gross earnings of $355 per week and nine with gross earnings of $395 per week. What is the total social security and Medicare tax (in $) the company must send to the Internal Revenue Service for the first quarter of the year?arrow_forwardAt the end of the weekly payroll period on June 30, the payroll register of Concord Consultants showed employee earnings of $71,000. Determine the firm's payroll taxes for the period. Use a social security rate of 6.2 percent, Medicare rate of 1.45 percent, FUTA rate of 0.6 percent, and SUTA rate of 5.4 percent. Consider all earnings subject to social security tax and Medicare tax and $40,908 subject to FUTA and SUTA taxes. (Round your answers to 2 decimal places.) Base Rate Tax Social security Medicare FUTA SUTA Total % % % % Amountarrow_forward
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