Homework Help is Here – Start Your Trial Now!
Business
Accounting
Daniel company has 10 employees who were paid the following wages during 1984. Tom-35,000 Samuel-175,000 Trudy-175,000 Gamy-80,000 Salmon75,000 Felix150,000 Goodman 45,000 Bruce-67,000 William-68,000 Capeman-75,000 the state unemployment tax is 5.4%. the federal unemployment tax is 0.6%. the maximum unemployment wages per employee are 7,000 for both the state and the federal government. Income tax is withheld at the rate of 22% for all employees who have annual wages over $50,000. If wages are under %50,000, the withholding rate is 15%. Daniel company is in a state that does not impose income taxes. Social security is imposed on both the employer and employee at the rate of 6.2% on the first $137,000 of wages. Medicare tax is imposed on both the employer and the employee at the rate of 1.45% on total wages. 1. Calculate the amount of payroll taxes paid by the employer, Daniel company. 2. Prepare the journal entry to record the payment of the payroll. 3. Prepare the journal entry to record the payroll tax expense at 12/31/1984, assuming the payroll taxes will be pain in 1985. In detail, please.

Daniel company has 10 employees who were paid the following wages during 1984. Tom-35,000 Samuel-175,000 Trudy-175,000 Gamy-80,000 Salmon75,000 Felix150,000 Goodman 45,000 Bruce-67,000 William-68,000 Capeman-75,000 the state unemployment tax is 5.4%. the federal unemployment tax is 0.6%. the maximum unemployment wages per employee are 7,000 for both the state and the federal government. Income tax is withheld at the rate of 22% for all employees who have annual wages over $50,000. If wages are under %50,000, the withholding rate is 15%. Daniel company is in a state that does not impose income taxes. Social security is imposed on both the employer and employee at the rate of 6.2% on the first $137,000 of wages. Medicare tax is imposed on both the employer and the employee at the rate of 1.45% on total wages. 1. Calculate the amount of payroll taxes paid by the employer, Daniel company. 2. Prepare the journal entry to record the payment of the payroll. 3. Prepare the journal entry to record the payroll tax expense at 12/31/1984, assuming the payroll taxes will be pain in 1985. In detail, please.

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 10PA: Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and...
See similar textbooks
icon
Related questions
Question
100%
Daniel company has 10 employees who were paid the following wages during 1984. Tom-35,000 Samuel-175,000 Trudy-175,000 Gamy-80,000 Salmon75,00O Felix150,000 Goodman 45,000 Bruce-67,000 William-68,000 Capeman-75,000 the state unemployment tax is 5.4%. the federal unemployment tax is 0.6%. the maximum unemployment wages per employee are 7,000 for both the state and the federal government. Income tax is withheld at the rate of 22% for all employees who have annual wages over $50,000. If wages are under %50,000, the withholding rate is 15%. Daniel company is in a state that does not impose income taxes. Social security is imposed on both the employer and employee at the rate of 6.2% on the first $137,000 of wages. Medicare tax is imposed on both the employer and the employee at the rate of 1.45% on total wages. 1. Calculate the amount of payroll taxes paid by the employer, Daniel company. 2. Prepare the journal entry to record the payment of the payroll. 3. Prepare the journal entry to record the payroll tax expense at 12/31/1984, assuming the payroll taxes will be pain in 1985. In detail, please.
Transcribed Image Text:Daniel company has 10 employees who were paid the following wages during 1984. Tom-35,000 Samuel-175,000 Trudy-175,000 Gamy-80,000 Salmon75,00O Felix150,000 Goodman 45,000 Bruce-67,000 William-68,000 Capeman-75,000 the state unemployment tax is 5.4%. the federal unemployment tax is 0.6%. the maximum unemployment wages per employee are 7,000 for both the state and the federal government. Income tax is withheld at the rate of 22% for all employees who have annual wages over $50,000. If wages are under %50,000, the withholding rate is 15%. Daniel company is in a state that does not impose income taxes. Social security is imposed on both the employer and employee at the rate of 6.2% on the first $137,000 of wages. Medicare tax is imposed on both the employer and the employee at the rate of 1.45% on total wages. 1. Calculate the amount of payroll taxes paid by the employer, Daniel company. 2. Prepare the journal entry to record the payment of the payroll. 3. Prepare the journal entry to record the payroll tax expense at 12/31/1984, assuming the payroll taxes will be pain in 1985. In detail, please.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Payroll register
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
College Accounting, Chapters 1-27 (New in Account…
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning
PAYROLL ACCT., 2019 ED.(LL)-TEXT
PAYROLL ACCT., 2019 ED.(LL)-TEXT
Accounting
ISBN:
9781337619783
Author:
BIEG
Publisher:
CENGAGE L
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS