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Problem Set B ..... PROBLEM 8-1B Kovarik Company had the following payroll for the week ended March 21: Salaries Sales salaries Office salaries Total $7,620.00 1,790.00 $9,410.00 Deductions Federal income tax withheld Social Security tax withheld Medicare tax withheld Charity withheld Total $1,094.00 583.42 136.45 153.00 $1,966.87 Assumed tax rates are as follows: a. 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. b. State unemployment tax, 5.4 percent (0.054) on the first $7,000 for each employee. C. Federal unemployment tax, 0.6 percent (0.006) on the first $7,000 for each employee. Required Record the following entries in general journal form: 1. The payroll entry as of March 21. 2. The entry to record the employer's payroll taxes as of March 21, assuming that the total payroll is subject to the FICA taxes (combined Social Security and Medicare) and that $4,965 is subject to unemployment taxes. 3. The payment of the employees on March 23. (Assume that the company has transferred cash to Cash-Payroll Bank Account for this payroll.)

Problem Set B ..... PROBLEM 8-1B Kovarik Company had the following payroll for the week ended March 21: Salaries Sales salaries Office salaries Total $7,620.00 1,790.00 $9,410.00 Deductions Federal income tax withheld Social Security tax withheld Medicare tax withheld Charity withheld Total $1,094.00 583.42 136.45 153.00 $1,966.87 Assumed tax rates are as follows: a. 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. b. State unemployment tax, 5.4 percent (0.054) on the first $7,000 for each employee. C. Federal unemployment tax, 0.6 percent (0.006) on the first $7,000 for each employee. Required Record the following entries in general journal form: 1. The payroll entry as of March 21. 2. The entry to record the employer's payroll taxes as of March 21, assuming that the total payroll is subject to the FICA taxes (combined Social Security and Medicare) and that $4,965 is subject to unemployment taxes. 3. The payment of the employees on March 23. (Assume that the company has transferred cash to Cash-Payroll Bank Account for this payroll.)

Corporate Financial Accounting
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 10.13EX
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Problem 8-1B
Q Problem Set B PROBLEM 8-1B Kovarik Company had the following payroll for the week ended March 21: Salaries Sales salaries Office salaries Total $7,620.00 1,790.00 $9,410.00 a. Deductions Federal income tax withheld Social Security tax withheld Medicare tax withheld Charity withheld Total 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. $1,094.00 583.42 136.45 153.00 $1,966.87 b. State unemployment tax, 5.4 percent (0.054) on the first $7,000 for each employee. c. Federal unemployment tax, 0.6 percent (0.006) on the first $7,000 for each employee. Required Record the following entries in general journal form: 1. The payroll entry as of March 21. 2. The entry to record the employer's payroll taxes as of March 21, assuming that the total payroll is subject to the FICA taxes (combined Social Security and Medicare) and that $4,965 is subject to unemployment taxes. 3. The payment of the employees on March 23. (Assume that the company has transferred cash to Cash-Payroll Bank Account for this payroll.) 99+ PROBLEM 8-2B Kay's Agency has the following payroll information for the week ended December 14. State income tax is computed as 20 percent of federal income tax. DELL LO 1 Check Figure Payroll Tax Expense, $1,017.77 LO 1
Transcribed Image Text:Q Problem Set B PROBLEM 8-1B Kovarik Company had the following payroll for the week ended March 21: Salaries Sales salaries Office salaries Total $7,620.00 1,790.00 $9,410.00 a. Deductions Federal income tax withheld Social Security tax withheld Medicare tax withheld Charity withheld Total 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. $1,094.00 583.42 136.45 153.00 $1,966.87 b. State unemployment tax, 5.4 percent (0.054) on the first $7,000 for each employee. c. Federal unemployment tax, 0.6 percent (0.006) on the first $7,000 for each employee. Required Record the following entries in general journal form: 1. The payroll entry as of March 21. 2. The entry to record the employer's payroll taxes as of March 21, assuming that the total payroll is subject to the FICA taxes (combined Social Security and Medicare) and that $4,965 is subject to unemployment taxes. 3. The payment of the employees on March 23. (Assume that the company has transferred cash to Cash-Payroll Bank Account for this payroll.) 99+ PROBLEM 8-2B Kay's Agency has the following payroll information for the week ended December 14. State income tax is computed as 20 percent of federal income tax. DELL LO 1 Check Figure Payroll Tax Expense, $1,017.77 LO 1
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