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 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 the general journal entry to record the employer's payroll taxes. Assume rates of 0.6 percent for federal unemployment tax and 5.4 percent for state unemployment tax based on the first $7,000 for each employee. Also assume that no employee has earned more than $7,000. 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.
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 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 the general journal entry to record the employer's payroll taxes. Assume rates of 0.6 percent for federal unemployment tax and 5.4 percent for state unemployment tax based on the first $7,000 for each employee. Also assume that no employee has earned more than $7,000. 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.
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 3E
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Question
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 |
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
b. Prepare the general journal entry to record the employer's payroll taxes. Assume rates of 0.6 percent for federal unemployment tax and 5.4 percent for state unemployment tax based on the first $7,000 for each employee. Also assume that no employee has earned more than $7,000. 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.
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