Complete Accounting Services has the following payroll information for the week ended December 7. State income tax is computed as 20 percent of federal income tax. NAME BEGINNING CUMULATIVE EARNINGS TOTAL EARNINGS DEDUCTIONS FEDERAL INCOME TAX STATE INCOME TAX Denato, T. 6,820.00 480.00 24.00 4.80 Herrera, M. 6,840.00 470.00 23.00 4.60 Joyner, J. 36,320.00 740.00 58.00 11.60 King, L. 26,200.00 540.00 30.00 6.00 Wilson, M. 116,060.00 2,720.00 456.78 91.36 Yee, N. 28,426.00 605.00 37.00 7.40 Assumed tax rates are as follows: FICA: Social Security, (employer) 6.2 percent (0.062) and (employee) 6.2 percent (0.062) on the first $118,500 for each employee, and Medicare, 1.45 percent (0.0145) on all earnings for each employee. State unemployment tax, 5.4 percent (0.054) on the first $7,000 for each employee. Federal unemployment tax, 0.6 percent (0.006) on the first $7,000 for each employee. a. Prepare a general journal entry to record the payroll as of December 7. The company's general ledger contains a Salary Expense account and a Salaries Payable account. If an amount box does not require an entry, leave it blank. If required, round your intermediate calculations and final answers to the nearest cent and use the rounded answers in subsequent computations. b. Prepare a general journal entry to record the payroll taxes as of December 7. If an amount box does not require an entry, leave it blank. If required, round your intermediate calculations and final answers to the nearest cent and use the rounded answers in subsequent computations. c. Journalize the entry to pay the payroll on December 9. (Assume that the company has transferred cash to the Cash—Payroll Bank Account for this payroll.) Round your answers to the nearest cent.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter8: Employer Taxes, Payments, And Reports

Section: Chapter Questions

Problem 2PA

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Complete Accounting Services has the following payroll information for the week ended December 7. State income tax is computed as 20 percent of federal income tax.

NAME	BEGINNING CUMULATIVE EARNINGS	TOTAL EARNINGS	DEDUCTIONS
FEDERAL INCOME TAX	STATE INCOME TAX
Denato, T.	6,820.00	480.00	24.00	4.80
Herrera, M.	6,840.00	470.00	23.00	4.60
Joyner, J.	36,320.00	740.00	58.00	11.60
King, L.	26,200.00	540.00	30.00	6.00
Wilson, M.	116,060.00	2,720.00	456.78	91.36
Yee, N.	28,426.00	605.00	37.00	7.40

Assumed tax rates are as follows:

FICA: Social Security, (employer) 6.2 percent (0.062) and (employee) 6.2 percent (0.062) on the first $118,500 for each employee, and Medicare, 1.45 percent (0.0145) on all earnings for each employee.
State unemployment tax, 5.4 percent (0.054) on the first $7,000 for each employee.
Federal unemployment tax, 0.6 percent (0.006) on the first $7,000 for each employee.

a. Prepare a general journal entry to record the payroll as of December 7. The company's general ledger contains a Salary Expense account and a Salaries Payable account. If an amount box does not require an entry, leave it blank. If required, round your intermediate calculations and final answers to the nearest cent and use the rounded answers in subsequent computations.
b. Prepare a general journal entry to record the payroll taxes as of December 7. If an amount box does not require an entry, leave it blank. If required, round your intermediate calculations and final answers to the nearest cent and use the rounded answers in subsequent computations.
c. Journalize the entry to pay the payroll on December 9. (Assume that the company has transferred cash to the Cash—Payroll Bank Account for this payroll.) Round your answers to the nearest cent.

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