Question

An employee receives an hourly rate of $15, with time and a half for all hours...

An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $120; all earnings are subject to social security tax; Social security tax rate, 6%; and Medicare tax rate, 1.5%; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, 0.8% on the first $7,000. Prepare the journal entries to record the salaries expense and the employer payroll tax expense. If required, round your answers to the nearest cent.

Prepare the journal entry to record the salaries expense. If required, round your answers to two decimal places. If an amount box does not require an entry, leave it blank or enter "0".

Prepare the journal entry to record the employer payroll tax expense. If required, round your answers to two decimal places. If an amount box does not require an entry, leave it blank or enter "0".

Homework Answers

Answer #1
a DEBIT CREDIT
December 10 Salary Expense 735.00 =(40*15)+(46-40)*15*1.5
      Social Security Tax Payable 44.10 =735*6%
      Medicare Tax Payable 11.03 =735*1.5%
       Federal Withholding Taxes Payable 120.00
       Salaries Payable 559.87
b
December 10 Payroll Tax Expense 86.00
      Social Security Tax Payable 44.10
      Medicare Tax Payable 11.03
      Federal Unemployment Tax Payable 5.88 =735*0.8%
      State Unemployment Tax Payable 24.99 =735*3.4%
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The payroll register of Seaside Architecture Company indicates $870 of social security and $224 of Medicare...
The payroll register of Seaside Architecture Company indicates $870 of social security and $224 of Medicare tax withheld on total salaries of $14,000 for the period. Assume earnings subject to state and federal unemployment compensation taxes are $5,300 at the federal rate of 0.8% and state rate of 5.4%. Prepare the journal entry to record the payroll tax expense for the period. If an amount box does not require an entry, leave it blank. If required, round your answers to...
Go Systems had the following payroll data for wages for the week ended February 5. The...
Go Systems had the following payroll data for wages for the week ended February 5. The state income tax is assumed to be 20% of the federal income tax. TAXABLE EARNINGS DEDUCTIONS TOTAL EARNINGS ENDING CUMULATIVE EARNINGS UNEMPLOYMENT SOCIAL SECURITY MEDICARE FEDERAL INCOME TAX STATE INCOME TAX SOCIAL SECURITY TAX MEDICARE TAX 6,770.00 27,850.00 6,770.00 6,770.00 6,770.00 1,015.00 203.00 419.74 98.17 Required: a. Prepare the general journal entry to record the payroll. If an amount box does not require an...
1. Calculate the employer's payroll taxes expense. Round your answer to the nearest cent. 2. Prepare...
1. Calculate the employer's payroll taxes expense. Round your answer to the nearest cent. 2. Prepare the journal entry to record the employer's payroll taxes expense for the week ended June 21 of the current year. Round your answers to the nearest cent. If an amount box does not require an entry, leave it blank. Portions of the payroll register for Kathy's Cupcakes for the week ended June 21 are shown below. The SUTA tax rate is 5.4%, and the...
Townson Company had gross wages of $200,000 during the week ended December 10. The amount of...
Townson Company had gross wages of $200,000 during the week ended December 10. The amount of wages subject to social security tax was $180,000, while the amount of wages subject to federal and state unemployment taxes was $24,000. Tax rates are as follows: Social security 6.0% Medicare 1.5 State unemployment 5.3 Federal unemployment 0.8 The total amount withheld from employee wages for federal income taxes was $32,000. Required: 1. Journalize the entry to record the payroll for the week of...
Payroll Taxes Kinsella, Inc., has a gross payroll of $24,000 for the pay period. Kinsella must...
Payroll Taxes Kinsella, Inc., has a gross payroll of $24,000 for the pay period. Kinsella must also withhold $2,900 in federal income taxes from the employees and pay state unemployment taxes of $72. Assume the entire payroll is eligible for Social Security and Medicare at standard rates. Required: Prepare the necessary journal entries for Kinsella to record both the gross pay earned by employees and the employer portion of these payroll taxes. If an amount box does not require an...
Payroll Entries Widmer Company had gross wages of $267,000 during the week ended June 17. The...
Payroll Entries Widmer Company had gross wages of $267,000 during the week ended June 17. The amount of wages subject to social security tax was $240,300, while the amount of wages subject to federal and state unemployment taxes was $33,000. Tax rates are as follows: Social security 6.0% Medicare 1.5% State unemployment 5.4% Federal unemployment 0.8% The total amount withheld from employee wages for federal taxes was $53,400. If an amount box does not require an entry, leave it blank....
15. Airline Temporary Services (ATS) pays employees monthly. Payroll information is listed below for January, the...
15. Airline Temporary Services (ATS) pays employees monthly. Payroll information is listed below for January, the first month of ATS’s fiscal year. Assume that none of the employees exceeds the federal unemployment tax maximum salary of $7,000 in January.    Salaries expense $580,000       Federal and state income tax withheld 116,000       Federal unemployment tax rate 0.8 %   State unemployment tax rate (after FUTA deduction) 5.4 %   Social security (FICA) tax rate 7.65 %    Required: Record salaries expense and...
Entries for Payroll and Payroll Taxes The following information about the payroll for the week ended...
Entries for Payroll and Payroll Taxes The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co.: Salaries: Deductions: Sales salaries $213,000 Income tax withheld $77,264 Warehouse salaries 117,000 U.S. savings bonds 9,658 Office salaries 109,000 Group insurance 7,902 $439,000 Tax rates assumed: Social security, 6% Medicare, 1.5% State unemployment (employer only), 5.4% Federal unemployment (employer only), 0.8% Required: If an amount box does not require an entry, leave it blank....
Payroll Entries The payroll register for D. Salah Company for the week ended May 18 indicated...
Payroll Entries The payroll register for D. Salah Company for the week ended May 18 indicated the following: Salaries $709,000 Federal income tax withheld 141,800 The salaries were all subject to the 6.0% social security tax and the 1.5% Medicare tax. In addition, state and federal unemployment taxes were calculated at the rate of 5.4% and 0.8%, respectively, on $13,000 of salaries. If an amount box does not require an entry, leave it blank. a. Journalize the entry to record...
Payroll Entries Widmer Company had gross wages of $180,000 during the week ended June 17. The...
Payroll Entries Widmer Company had gross wages of $180,000 during the week ended June 17. The amount of wages subject to social security tax was $162,000, while the amount of wages subject to federal and state unemployment taxes was $23,000. Tax rates are as follows: Social security6.0% Medicare1.5% State unemployment5.4% Federal unemployment0.8% The total amount withheld from employee wages for federal taxes was $36,000. If an amount box does not require an entry, leave it blank. If required, round answers...