College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 9, Problem 1MC
To determine
Ascertain the correct classification for the employer’s Social Security, Medicare, FUTA and SUTA taxes.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Total payroll was $946,000, of which $222,000 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 was $806,000. Income taxes in the amount of
$173,700 were withheld, as was $19,500 in union dues. The state unemployment tax is 3.5%, but Waterway Company is allowed a
credit of 2.3% by the state for its unemployment experience. Also, assume that the current F.I.C.A. tax is 7.65% on an employee's wages
to $128,400 and 1.45% in excess of $128,400. No employee for Waterway makes more than $250,000. 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. (If no entry
is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is
entered. Do not indent manually. List all…
Identify 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 Payable
The payroll register includes sections for recording:
A.
gross pay, deductions, and net pay.
B.
accrued expenses, unearned revenues, and net pay.
C.
assets, liabilities, equity, revenues, and expenses.
D.
employee home address and phone number.
Chapter 9 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 9 - Prob. 1TFCh. 9 - Prob. 2TFCh. 9 - Prob. 3TFCh. 9 - Prob. 4TFCh. 9 - The W-4, which shows total annual earnings and...Ch. 9 - Prob. 1MCCh. 9 - LO2 Joyce Lee earns 30,000 a year. Her employer...Ch. 9 - Prob. 3MCCh. 9 - Prob. 4MCCh. 9 - Prob. 5MC
Ch. 9 - Total earnings for the employees of Garys Grill...Ch. 9 - Prob. 2CECh. 9 - Prob. 3CECh. 9 - Prob. 4CECh. 9 - Prob. 1RQCh. 9 - Prob. 2RQCh. 9 - Prob. 3RQCh. 9 - Prob. 4RQCh. 9 - Prob. 5RQCh. 9 - Identify all items that are debited or credited to...Ch. 9 - Prob. 7RQCh. 9 - Prob. 8RQCh. 9 - Prob. 9RQCh. 9 - Prob. 10RQCh. 9 - Prob. 11RQCh. 9 - Prob. 12RQCh. 9 - Prob. 13RQCh. 9 - CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL...Ch. 9 - CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL...Ch. 9 - CALCULATION OF TAXABLE EARNINGS AND EMPLOYER...Ch. 9 - Prob. 4SEACh. 9 - JOURNAL ENTRIES FOR PAYMENT OF EMPLOYER PAYROLL...Ch. 9 - Prob. 6SEACh. 9 - Prob. 7SPACh. 9 - JOURNALIZING AND POSTING PAYROLL ENTRIES Cascade...Ch. 9 - Prob. 9SPACh. 9 - CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL...Ch. 9 - Prob. 2SEBCh. 9 - Prob. 3SEBCh. 9 - TOTAL COST OF EMPLOYEE B. F. Goodson employs...Ch. 9 - JOURNAL ENTRIES FOR PAYMENT OF EMPLOYER PAYROLL...Ch. 9 - Prob. 6SEBCh. 9 - CALCULATING PAYROLL TAXES EXPENSE AND PREPARING...Ch. 9 - JOURNALIZING AND POSTING PAYROLL ENTRIES Oxford...Ch. 9 - Prob. 9SPBCh. 9 - The director of the art department at an...Ch. 9 - Prob. 1ECCh. 9 - The totals line from Nix Companys payroll register...Ch. 9 - Payrex Co. has six employees. All are paid on a...
Knowledge Booster
Similar questions
- What accounts are debited and credited when an employer records the electronic transfer of FICA taxes and federal income taxes that have been withheld?arrow_forwardDetermine the employer's deposit of withholding, Social Security, and Medicare for the payroll register. \ table[[Employee, \table [[Gross], [earnings]], Withholding, \table [[Employee's], [Social], [Security]], Medicare, Net earnings, \table[[Employer's], [Social], [Security]]], [\table[[Pascel, J.], [Thomas, P.], [Tillman, D. ]], \table[[$ 1,927 K Gross Employee earnings Withholding Determine the employer's deposit of withholding, Social Security, and Medicare for the payroll register. Employer's Social Security Pascel, J. Thomas, P Tillman, D. $1,927 1,595 1,420 $174 140 96 S The employer's deposit is $ (Type an integer or a decimal) C Employee's Social Security Medicare Net earnings $119.47 $27.94 98.89 23.13 88.04 20.59 $1,605.59 1,332.98 1,215.37 $119.47 98.89 88.04arrow_forwardThe W-4 form lists all of all of the following EXCEPT one: a.Lists the employee's Social Security Number b.Lists the total wages to be earned c.Shows the filing status d.Lists the number of allowances claimedarrow_forward
- What is the source of data used to: a. Record the distribution of the payroll. b. Record the employer's payroll taxes.arrow_forwardSubject - account Please help me. Thankyou.arrow_forwardRecording 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_forward
- Which of the following is business income for NOL purposes? Interest earned on savings account. Unemployment compensation. Alimony received. IRA distribution.arrow_forwardRecord the employer's benefit expense.arrow_forwardFor financial institutions, wages and staff benefits are considered part of which type of the following: a. Interest expenses. b. Non-interest income. c. Non-interest expenses. d. Net Interest income.arrow_forward
- Explain with examples the following: (a) Residence rule (b) Source rule (c) Relief for medical insurance premium (d) Expenditure incurred in the production of exempt income (e) Deductibility of expenses in relation to employment incomearrow_forward· 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…arrow_forwardWhat information is necessary to record payroll transactions? Which account is used to record an employee’s net pay? What features does QBO offer for Payroll?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub