Financial Accounting
10th Edition
ISBN: 9781119298229
Author: Weygandt, Jerry J.; Kieso, Donald E.; Kimmel, Paul D.
Publisher: WILEY
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Question
Chapter I, Problem 1E
(a) 1.
Gross earnings
Gross earnings are a payment made to an employee for completion of work allocated by the company. Gross pay is evaluated by using normal hours worked by the employee with wages rate. Other name of gross earnings is gross pay.
Payroll tax
The costs incurred by an employer to pay the employee for his labor, including other employee benefits, plus the payroll taxes the employer pays to the government, are called payroll tax.
To determine
To compute: The gross earnings of using regular pay and overtime pay.
2.
To determine
To Compute: FICA taxes for Person M’s wages for the current week.
3.
To determine
To Compute: Federal income taxes withheld for Person M’s wages for the current week.
4.
To determine
To Compute: State income taxes withheld for Person M’s wages for the current week.
5.
To determine
To compute: The net pay using gross earnings, FICA taxes payable and federal income taxes payable.
(b)
To determine
Salaries and wages payable
Salaries and wages payable is a payment made to an employee for completion of work allocated by the company. Gross pay is evaluated by using normal hours worked by the employee with wages rate.
To prepare: The
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