Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781337517386
Author: WARREN
Publisher: Cengage
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Textbook Question
Chapter 8, Problem 8.2.4P
Recording payroll and payroll taxes
The following information about the payroll for the week ended October 4 was obtained from the records of Simkins Mining Co.:
Instructions
Illustrate the effect un (he accounts and financial statements of recording the liability for the October 4 employer payroll taxes.
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Recording payroll and payroll taxes.
Assume that the company is subject to a 2% state unemployment tax and 0.6% federal unemployment tax.
REQUIRED: Record the following in general journal entry form on May 31.
A. Accrual of monthly payroll
B. Payment of the net payroll
C. Accrual of employers payroll taxes(assume that the FICA matches the amount withhold)
D. Payment of these payroll related liabilities. (assume that all are settled at the same time)
The options for the shaded drop boxes are :
Administrative salaries expense, cash, custodial salaries expense, federal income tax withholding payable, federal unemployment tax payable, FICA tax payable, payroll payable, payroll tax expense, sales salaries expense, state unemployment tax payable.
How do I jounalize the enties for a and b?
a. Journalize the entry to record the payroll for the week of May 18.b. Journalize the entry to record the payroll tax expense incurred for the week of May 18.
Calculation of Taxable Earnings and Employer Payroll Taxes, and Preparation of Journal Entry
1. Calculate the amount of taxable earnings for unemployment, Social Security, and Medicare taxes.
2. Prepare the journal entry to record the employer's payroll taxes as of October 7, 20--. Round your answers to the nearest cent. If an amount box does not require an entry, leave it blank.
Selected information from the payroll register of Howard's Cutlery for the week ended October 7, 20--, is presented below. Social Security tax is 6.2% on the first $118,500 of earnings for each employee. Medicare tax is 1.45% on gross earnings. FUTA tax is 0.6% and SUTA tax is 5.4% on the first $7,000 of earnings.
Taxable Earnings
Employee Name
Cumulative PayBefore CurrentEarnings
CurrentGross Pay
UnemploymentCompensation
SocialSecurity
Carlson, David J.
$6,635
$950
Delgado, Luisa
6,150
1,215
Lewis, Arlene S.
54,375
2,415
Nixon, Robert R.
53,870…
Chapter 8 Solutions
Survey of Accounting (Accounting I)
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