Financial Accounting
4th Edition
ISBN: 9781259307959
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Chapter 8, Problem 8.4BP
Record
Emily’ Turnbull, president of Aerobic Equipment Corporation, is concerned about her employees’ well-being. The company offers its employees free medical dental, and life insurance coverage. It also matches employee contributions to a voluntary retirement plan up to 6% of their salaries. Assume that no employee’s cumulative wages exceed the relevant wage bases Payroll information for the biweekly payroll period ending January 24 is listed below.
| Wages and salaries | $2,500,000 |
| Employee contribution to voluntary retirement plan | 125,000 |
| Medical insurance premiums paid by employer | 50,000 |
| Dental insurance premiums paid by employer | 17,500 |
| Life insurance premiums paid by employer | 8,750 |
| Federal and state income tax withheld | 537,500 |
| FICA tax rate | 7,65% |
| Federal and state |
6,20% |
Required:
1 Record the employee salary expense, withholdings and salaries payable
2 Record the employer-provided
3. Record the employer payroll taxes.
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Emily Turnbull, president of Aerobic Equipment Corporation, is concerned about her employees’ well-being. The company offers its employees free medical, dental, and life insurance coverage. It also matches employee contributions to a voluntary retirement plan up to 6% of their salaries. Assume that no employee’s cumulative wages exceed the relevant wage bases. Payroll information for the biweekly payroll period ending January 24 is listed below.Wages and salaries $2,500,000Employee contribution to voluntary retirement plan 125,000Medical insurance premiums paid by employer 50,000Dental insurance premiums paid by employer 17,500Life insurance premiums paid by employer 8,750Federal and state income tax withheld 537,500FICA tax rate 7.65%Federal and state unemployment tax rate…
Emily Tumbull, president of Gold Coast Equipment Corporation, is concerned about her employees' well-being. The company offers its
employees free medical, dental, and life insurance coverage. It also matches employee contributions to a voluntary retirement plan up
to 5% of their salaries Assume that no employee's cumulative wages exceed the relevant wage bases. Payroll information for the
biweekly payroll period ending January 24 is listed below
Wages and salaries
Employee contribution to voluntary retirement plan
Medical insurance premiums paid by employer
Dental Insurance premiums paid by employer
Life insurance premiums paid by employer
Federal and state income tax withheld
FICA tax rate
Federal and state unemployment tax rate
Required:
1. Record the employee salary expense, withholdings, and salaries payable.
2. Record the employer-provided fringe benefits
3. Record the employer payroll taxes
$1,900,000
95,000
38,000
13,300
6,650
488,500
7.65%
6.20%
Record the necessary entry for…
Emily Turnbull, president of Fitness Equipment Corporation, is concerned about her employees' well - being. The company offers its employees free medical dental, and life insurance coverage. It also matches employee contributions to a voluntary retirement plan up to 5% of their salaries. Assume that no employee 's cumulative wages exceed the relevant wage bases. Payroll information for the biweekly payroll period ending January 24 is listed below.
Wages and salaries S2, 000, 000
Employee contribution to voluntary retirement plan 100, 000Medical insurance premiums paid by employer 40, 000Dental insurance premiums paid by employer 14, 000Life insurance premiums paid by employer 7, 000Federal and state income tax withheld 430, 000FICA tax rate 7.65%Federal and state unemployment tax rate 6.20%
Required: 1 Record the employee salary expense, withholdings, and salaries payable.2 Record the employer - provided fringe benefits.3 Record the employer payroll taxes.
Chapter 8 Solutions
Financial Accounting
Ch. 8 - Prob. 1RQCh. 8 - Prob. 2RQCh. 8 - Prob. 3RQCh. 8 - Provide examples of current liabilities in the...Ch. 8 - Prob. 5RQCh. 8 - Prob. 6RQCh. 8 - How does commercial paper differ from a normal...Ch. 8 - Prob. 8RQCh. 8 - Prob. 9RQCh. 8 - Prob. 10RQ
Ch. 8 - Prob. 11RQCh. 8 - Prob. 12RQCh. 8 - Prob. 13RQCh. 8 - Prob. 14RQCh. 8 - Prob. 15RQCh. 8 - Prob. 16RQCh. 8 - Prob. 17RQCh. 8 - Prob. 18RQCh. 8 - Prob. 19RQCh. 8 - Prob. 20RQCh. 8 - Prob. 21RQCh. 8 - Prob. 22RQCh. 8 - Prob. 23RQCh. 8 - Record notes payable (LO82) Flip Side of BE82 On...Ch. 8 - Prob. 8.2BECh. 8 - Record notes receivable (LO82) Flip Side of BE81...Ch. 8 - Determine interest expense (LO82) Record...Ch. 8 - Prob. 8.5BECh. 8 - Record deferred revenues (LO84) On December 18,...Ch. 8 - Prob. 8.7BECh. 8 - Prob. 8.8BECh. 8 - Prob. 8.9BECh. 8 - Prob. 8.10BECh. 8 - Prob. 8.11BECh. 8 - Prob. 8.12BECh. 8 - Prob. 8.13BECh. 8 - Prob. 8.14BECh. 8 - Prob. 8.15BECh. 8 - Determine proper classification of liabilities...Ch. 8 - Prob. 8.2ECh. 8 - Prob. 8.3ECh. 8 - Prob. 8.4ECh. 8 - Determine interest expense (LO82) OS Environmental...Ch. 8 - Record a line of credit (LO82) The following...Ch. 8 - Calculate payroll withholdings and payroll taxes...Ch. 8 - Record payroll (LO83) During January, Luxury...Ch. 8 - Prob. 8.9ECh. 8 - Prob. 8.10ECh. 8 - Analyze and record a contingent liability (LO85)...Ch. 8 - Prob. 8.12ECh. 8 - Prob. 8.13ECh. 8 - Prob. 8.14ECh. 8 - Prob. 8.15ECh. 8 - Complete the accounting cycle using current...Ch. 8 - Prob. 8.1APCh. 8 - Prob. 8.2APCh. 8 - Prob. 8.3APCh. 8 - Record Payroll (LOS3) Vacation Destinations offers...Ch. 8 - Prob. 8.5APCh. 8 - Prob. 8.6APCh. 8 - Prob. 8.7APCh. 8 - Prob. 8.8APCh. 8 - Selected financial data regarding current assets...Ch. 8 - Prob. 8.1BPCh. 8 - Prob. 8.2BPCh. 8 - Prob. 8.3BPCh. 8 - Record Emily Turnbull, president of Aerobic...Ch. 8 - Prob. 8.5BPCh. 8 - Logins Roadhouse opened a new restaurant in...Ch. 8 - Record contingencies (LO85) Compact Electronics is...Ch. 8 - Prob. 8.8BPCh. 8 - Calculate and analyze rates (LO86) Selected...Ch. 8 - Great AdventuresContinuing Problem (This is a...Ch. 8 - Prob. 8.2APFACh. 8 - Prob. 8.3APFACh. 8 - Comparative Analysis American Eagle Outfitters,...Ch. 8 - Prob. 8.5APECh. 8 - Written Communication Western Manufacturing is...Ch. 8 - Earnings Management Quattro Technologies, a...
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