Only Ex 10-10 RETURN BY THEON YOUR RECE12-524Chapter 10 Liabilities: Current, Installment Notes, and ContingenciesFor the current pay period, the computer programmer worked 48 hours and the administratorworked 51 hours. Assume that the social security tax rate was 6.0%, and the Medicare tax ratewas 1.5%.SAOW ME HOWDetermine the gross pay and the net pay for each of the three employees for the current pauperiod.EX 10-10 Summary payroll dataIn the following summary of data for a payroll period, some amounts have been intentionallyomitted:Obj. 2Va. (3) Total earnings,$540,000Earnings:1. At regular rate2. At overtime rate3. Total earnings80,000EXCEL TEMPLATEDeductions:$ (32,400)4. Social security tax5. Medicare tax(8,100)6. Income tax withheld7. Medical insurance(135,000)(18,900)8. Union dues9. Total deductions10. Net amount paid$(201,150)$ 338,850Accounts debited:11. Factory Wages$ 285,00012. Sales Salaries13. Office Salaries120,000a. Calculate the amounts omitted in lines (1), (3), (8), and (12).b. Journalize the entry to record the payroll accrual.c. Journalize the entry to record the payment of the payroll.Obj. 2

Journal entry is recorded for every business transaction in the book of journal book. It is the…

EX 10-10 Summary payroll data In the following summary of data for a payroll period, some amounts have been intentionally omitted: Obj. 2 Earnings: 1. At regular rate $ ? 2. At overtime rate 80,000 3. Total earnings $ ? Deductions: 4. Social security tax 5. Medicare tax $ (32,400) (8,100) 6. Income tax withheld (135,000) 7. Medical insurance (18,900) 8. Union dues 9. Total deductions $(201,150) 10. Net amount paid $ 338,850 Accounts debited: 11. Factory Wages $ 285,000 12. Sales Salaries 13. Office Salaries 120,000 a. Calculate the amounts omitted in lines (1), (3), (8), and (12). b. Journalize the entry to record the payroll accrual. c. Journalize the entry to record the payment of the payroll. Obj. 2

EX 10-10 Summary payroll data In the following summary of data for a payroll period, some amounts have been intentionally omitted: Obj. 2 Earnings: 1. At regular rate $ ? 2. At overtime rate 80,000 3. Total earnings $ ? Deductions: 4. Social security tax 5. Medicare tax $ (32,400) (8,100) 6. Income tax withheld (135,000) 7. Medical insurance (18,900) 8. Union dues 9. Total deductions $(201,150) 10. Net amount paid $ 338,850 Accounts debited: 11. Factory Wages $ 285,000 12. Sales Salaries 13. Office Salaries 120,000 a. Calculate the amounts omitted in lines (1), (3), (8), and (12). b. Journalize the entry to record the payroll accrual. c. Journalize the entry to record the payment of the payroll. Obj. 2

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter10: Liabilities: Current, Installment Notes, And Contingencies

Section: Chapter Questions

Problem 10.11EX: Payroll tax entries According to a summary of the payroll of Mountain Streaming Co., 120,000 was...

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Reference Figure 12.15 and use the following information to complete the requirements. A. Determine the federal income tax withholdings amount per monthly pay period for each employee. B. Record the employee payroll entry (all employees) for the month of January assuming FICA Social Security is 6.2%, FICA Medicare is 1.45%, and state income tax is equal to 3% of gross income. (Round to the nearest cent if necessary.)
Payroll tax entries According to a summary of the payroll of Mountain Streaming Co., 120,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, 45,000 was subject to state and federal unemployment taxes. A. Calculate the employers payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%. B. Journalize the entry to record the accrual of payroll taxes.
Payroll accounts and year-end entries The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year: 211 Salaries Payable 212 Social Security Tax Payable 9,273 213 Medicare Tax Payable 2,318 214 Employees Federal Income Tax Payable 15,455 215 Employees State Income Tax Payable 13,909 216 State Unemployment Tax Payable 1,400 217 Federal Unemployment Tax Payable SOO 218 Retirement Savings Deductions Payable 3,400 219 Medical Insurance Payable 27r000 411 Operations Salaries Expense 950.000 S11 Officers Salaries Expense 600,000 SI 2 Office Salaries Expense 150.000 S19 Payroll Tax Expense 137,951 The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December: Dec. 2. Issued Check No. 410 for 53,400 to Jay Bank to invest in a retirement savings account for employees. 2. Issued Check No. 411 to Jay Bank for 527,046, in payment of 59,273 of social security tax, 2,318 of Medicare tax, and 15,455 of employees federal income tax due. 13 Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Dec. 13. Issued Check No. 420 in payment of the net amount of the biweekly payroll to fund the payroll bank account. 13. Journalized the entry to record payroll taxes on employees' earnings of December 13: social security tax. 4,632; Medicare tax, 1,158; state unemployment tax. 350; federal unemployment tax, 125. 16. Issued Check No. 424 to Jay Bank for 27,020. in payment of 9,264 of social security tax, 2,316 of Medicare tax, and 15,440 of employees' federal income tax due. 19. Issued Check No. 429 to Sims-Walker Insurance Company for 31,500, in payment of the semiannual premium on the group medical insurance policy. 27. Journalized the entry to record the biweekly payroll. A summary of the payroll 27. Issued Check No. 541 in payment of the net amount of the biweekly payroll to fund the payroll bank account. 27. Journalized the entry to record payroll taxes on employees' earnings of December 27: social security tax, 4,668; Medicare tax. 1,167: state unemployment tax, 225; federal unemployment tax, 75. 27. Issued Check No. 543 for 20,884 to State Department of Revenue in payment of employees' state income tax due on December 31. 31. Issued Check No. 545 to Jay Bank for 3400 to invest in a retirement savings account for employees. 31. Paid 45,000 to the employee pension plan. The annual pension cost is 60,000. (Record both the payment and unfunded pension liability.) Instructions 1. Journalize the transactions. 2. Journalize the following adjusting entries on December 31: a. Salaries accrued: operations salaries, 8,560; officers salaries, 5,600: office salaries, 1,400. The payroll taxes are immaterial and are not accrued. b. Vacation pay, 15,000.
Payroll accounts and year-end entries The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year: The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December: Instructions 1. Journalize the transactions. 2. Journalize the following adjusting entries on December 31: A. Salaries accrued: sales salaries, 4,275; officers salaries, 2,175; office salaries, 825. The payroll taxes are immaterial and are not accrued. B. Vacation pay, 13,350.