Question

According to a summary of the payroll of Guthrie Co., $790,000 was subject to the 6.0%...

According to a summary of the payroll of Guthrie Co., $790,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $40,000 was subject to state and federal unemployment taxes.

Required: A. Calculate the employer’s payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.6%. B. On December 31, journalize the entry to record the accrual of payroll taxes. Refer to the Chart of Accounts for exact wording of account titles.

Homework Answers

Answer #1
A
Social Security Tax Payable 47400 =790000*6%
Medicare Tax Payable 11850 =790000*1.5%
State Unemployment Tax Payable 2160 =40000*5.4%
Federal Unemployment Tax Payable 240 =40000*0.6%
Employer’s payroll taxes 61650
B
Date Description Debit Credit Assets Liabilities Equity
Dec 31 Payroll Tax Expense 61650
       Social Security Tax Payable 47400
       Medicare Tax Payable 11850
      State Unemployment Tax Payable 2160
      Federal Unemployment Tax Payable 240
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
Payroll Tax Entries According to a summary of the payroll of Guthrie Co., $624,000 was subject...
Payroll Tax Entries According to a summary of the payroll of Guthrie Co., $624,000 was subject to the 6.0% social security tax and $768,000 was subject to the 1.5% Medicare tax. Also, $21,000 was subject to state and federal unemployment taxes. a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 4.2%; federal unemployment, 0.6%. $ b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it...
According to a summary of the payroll of Murtagh Co., $750,000 was subject to the 6.0%...
According to a summary of the payroll of Murtagh Co., $750,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $50,000 was subject to state and federal unemployment taxes. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%. Journalize the entry to record the accrual of payroll taxes.
According to a summary of the payroll of Sinclair Company, $545,000 was subject to the 6.0%...
According to a summary of the payroll of Sinclair Company, $545,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $10,000 was subject to state and federal unemployment taxes. Required: (a) Calculate the employer’s payroll taxes using the following rates: State unemployment, 4.2%; Federal unemployment, 0.8%. (b) Journalize the entry to record the accrual of the employer's payroll taxes. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS Sinclair...
The payroll register for Gamble Company for the week ended April 29 indicated the following: Salaries...
The payroll register for Gamble Company for the week ended April 29 indicated the following: Salaries $1,560,000 Social security tax withheld 93,600 Medicare tax withheld 23,400 Federal income tax withheld 312,000 In addition, state and federal unemployment taxes were calculated at the rate of 5.4% and 0.6%, respectively, on $260,000 of salaries. Required: A. Journalize the entry to record the payroll for the week of April 29.* B. Journalize the entry to record the payroll tax expense incurred for the...
According to a summary of the payroll of Scotland Company, total payroll was $500,000 and all...
According to a summary of the payroll of Scotland Company, total payroll was $500,000 and all subject to the 1.5% Medicare tax. $450,000 was subject to the 6.0% social security tax. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (4.2%) and federal (0.8%) unemployment taxes.
According to a summary of the payroll of Scotland Company, salaries for the period were $500,000....
According to a summary of the payroll of Scotland Company, salaries for the period were $500,000. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (4.2%) and federal (0.8%) unemployment taxes. All earnings are subject to social security tax of 6.0% and Medicare tax of 1.5%. Required: (a) Journalize the entry to record the accrual of payroll.* (b) Journalize the entry to record the accrual of payroll taxes.* *Refer to the Chart of Accounts for exact wording...
PLEASE USE CHART I PROVIDED The payroll register for D. Salah Company for the week ended...
PLEASE USE CHART I PROVIDED The payroll register for D. Salah Company for the week ended May 18 indicated the following: Salaries $561,000 Federal income tax withheld 112,200 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 $10,659 of salaries. a. Journalize the entry to record the payroll for the week of May 18.* b....
According to a payroll register summary of Frederickson Company, the amount of employees’ gross pay in...
According to a payroll register summary of Frederickson Company, the amount of employees’ gross pay in December was $850,000, of which $80,000 was not subject to Social Security taxes of 6.2% and $750,000 was not subject to state and federal unemployment taxes. Determine the employer’s payroll tax expense for the month, using the following rates: FICA 7.65%, state unemployment 5.4%, and federal unemployment 0.8%. PAYROLL TAX EXPENSE: $ Prepare the journal entry to record December payroll tax expense. ACCOUNT TITLE...
Exercise 11-13 (Part Level Submission) According to a payroll register summary of Frederickson Company, the amount...
Exercise 11-13 (Part Level Submission) According to a payroll register summary of Frederickson Company, the amount of employees’ gross pay in December was $882,700, of which $88,500 was not subject to Social Security taxes of 6.2% and $776,200 was not subject to state and federal unemployment taxes. Collapse question part (a) Determine the employer’s payroll tax expense for the month, using the following rates: FICA 7.65%, state unemployment 5.4%, and federal unemployment 0.8%. (Round answer to 0 decimal places, e.g....
The following information about the payroll for the week ended December 30 was obtained from the...
The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.: Salaries: Sales salaries $625,000 Warehouse salaries 240,000 Office salaries 320,000 $1,185,000 Deductions: Income tax withheld $232,260 Social security tax withheld 71,100 Medicare tax withheld 17,775 U.S. savings bonds 35,500 Group insurance 53,325 $409,960 Tax rates assumed: Social security 6% Medicare 1.5% State unemployment (employer only) 5.4% Federal unemployment (employer only) 0.8% Required: 1. Assuming that the payroll for the last...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT