Required a. Prepare the journal entry to record the payment of payroll on December 31, Year 1. b. Prepare the journal entry to record the payroll tax expense for Electronics Service Company for December Year 1.
Q: SHADOW BONE Company reported net income of P7,500,000 for the current year: The auditor raised quest...
A: Adjusted net income for the current year = Reported net income for the year + Debit adjustment of pr...
Q: Matuku’s Fishing Supplies has two divisions, Basic and Deep Sea. Each division manager is evaluated ...
A: In the first solution, we will use a general pricing rule and we will find out the optimal transfer ...
Q: On 1 April 2014, Company A recently acquired 75% of the equity shares of Company B. Company B had to...
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for yo...
Q: General Electric company which manufacture electric motor has a capacity of producing 150 motors is ...
A: In Marginal Costing more focus is given on variable costs...
Q: The capital structure of ABC Company at December 31, 2019 are as follows: 12% Preference share capit...
A: Shareholder's equity is the amount that has been contributed by the investors in a company over a pe...
Q: I want to have 6000000 when I retire on April 18, 2055. I plan on making annual equal payments start...
A: Future Value: Using an expected rate of growth, future value (FV) is defined as the worth of a prese...
Q: Blue Ocean Co. has the following balance sheet: Cash ...
A: Solution Concept Profit margin =net income / sales Plowback ratio =amount retained =r...
Q: FloorMart has the following values on its Balance Sheet: Current Liabilities $12,000 Total Assets 37...
A: The ratio analysis helps to analyze the financial statements of the business. The working capital is...
Q: Use the following information for Meeker Corp. to determine the amount of equity to report. $ 68,000...
A: D. $250,000 Assets - Liabilities = Owner's Equity Cash + Equipment + Land - Liabilities = Owner's Eq...
Q: According to the 2020 Reports to the Nations published by the Association of Certified Fraud Examine...
A: The 2020 Reports to the Nations published by the Association of Certified Fraud Examiners was the 1...
Q: On December 1, Orenthal Marketing Company received $7,500 from a customer for a 2-month marketing pl...
A: Lets understand the meaning of unearned revenue. When receipt is received in prior to service or goo...
Q: ual income för a period Book Sales, Inc., supplies textbooks to college and university books are shi...
A: Under Accrual basis of accounting revenue and expense booked in the period for which they relates, w...
Q: The credit purchase of a new oven for $5,700 was posted to Kitchen Equipment as a $5,700 debit and t...
A: The trial balance is a summary of all the ledger accounts. It indicates the accuracy of the closing ...
Q: How much of this can he deduct from adjusted gross income and briefly explain the answer?
A: Adjusted gross income is the income which is earned by the person who is the taxpayer on which he or...
Q: On July 1, 2019, Isaiah Company issued rights to shareholders to subscribe to additional ordinary sh...
A: Stockholder Equity- It refers to the equity stake presently possessed by the organization which is p...
Q: High Step Shoes had annual revenues of $197,000, expenses of $109,700, and paid dividends of $22,800...
A: Closing Entries: The four entries posted after all adjustments have been completed and the financial...
Q: Can you also do Stacey engineering income statement for month ended June 30, 2018 ( the income state...
A: Statement of Owner's Equity - Statement of owner's equity includes amount contributed by the owner o...
Q: b) Refer to the following data: Direct material used ...
A: Period costs are those costs that are not included in the cost of the product and are expensed in th...
Q: A business had $52.000 in revenue at the end of its accounting period and $60.000 in Expenses. The o...
A: Closing Journal Entry: Closing journal entries are passed at the end of the accounting period. In th...
Q: elect all that apply Determine which of the following statements below regarding a merchandiser are...
A: Solution Concept Merchandiser are the person who basically buys a merchandise and sells the merchand...
Q: Intra group Transactions Kent Ltd owns all the share capital of Lodh Ltd. That is, Lodh Ltd is a w...
A: Solution Share capital is the money a company raises by issuing common stock or preferred stock.
Q: Required:P A. Proof of cash statement B. Adjusting journal entries
A: The question provides us with transactions of Pacho Enterprise for its bank book. Also some adjustme...
Q: Fill in the blanks in the following separate Income statements a through e. (Amounts to be deducted ...
A: Solution: Income statement is one of the financial statement of company that shown income and expend...
Q: Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets The budget director of...
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: HELL'S KITCHEN Company has the following accounts information for the year ended December 31, 2021. ...
A: Stockholders' equity: Stockholders' equity means the net assets available to shareholders after dedu...
Q: MOWGLI Company provided the following information for the year ended December 31, 2021. Contribution...
A: 1. Income Statement - This statement shows the income earned and loss incurred by the organization i...
Q: CROWN Pty Ltd (‘the company’) recorded the following transactions during the 2021 tax year: - 1 Ju...
A: If any entity is a corporate tax entity then it is considered as a 'franking entity'. The amount of ...
Q: Save-the-Earth Co. reports the following income statement accounts for the year ended December 31. S...
A: THE MULTI-STEP INCOME STATEMENT PROVIDES DETAILED REPORTING OF YOUR COMPANY'S REVENUES AND EXPENSES ...
Q: ) Refer to the following data: Direct material used ...
A: Solution: Product costs are direct material, direct labor and manufacturing Overheads. Overhead incl...
Q: Which of the following transactions is correctly matched with its location on the statement of cash ...
A: Cash flow statement provided information about the cash inflows and cash outflows of the company. Ca...
Q: VAL HELSING Company provided the following information on December 31, 2021: Accounts payable (net o...
A: Current liabilities: Liabilities that have to be paid within one year or one operating cycle, whiche...
Q: MOWGLI Company provided the following information for the year ended December 31, 2021. Contribution...
A: 1. Income Statement - This statement shows the income earned and loss incurred by the organization i...
Q: How much is the ordinary share capital as of December 31,2019? How much is the total shareholder's ...
A: Ordinary share capital is the capital for which there is voting ri...
Q: FloorMart has the following values on its Balance Sheet: Current Liabilities $12,000 Total Assets 37...
A: Let us understand the following: WORKING CAPITAL: This is the capital of the entity which is utilize...
Q: A company had revenues of $63,000 and expenses of $47,750 for the accounting period. Dividends of $6...
A: Closing Entries are those entries that are made at the end of the year to close all temporary accoun...
Q: Core Company reported the following increases (decreases) in the accounts for the current year: Cash...
A: Stockholders' equity: Stockholders' equity means the net assets available to shareholders after dedu...
Q: Kula Company Ltd manufactures two products, Flora and Fauna. Estimates for the company's products fo...
A: Calculation of activity rates : Order Processing = Order processing costNumber of order processed =...
Q: Hyundai Company has a relevant range of production between 10,000 and 20,000 units. The following co...
A: Formula: Variable cost per unit = Direct materials + Direct labor + Variable manufacturing overhead
Q: = Retained earnings account has a credit balance of $17,850 before closing entries are menses are $4...
A: Closing entries are closing temporary accounts by transferring the account balance to permanent acco...
Q: You are planning for a Beach gateaway with your officemates. The trip will not be for another three ...
A: Cash budget is a statement wherein the cash receipts and cash disbursements are projected in a logic...
Q: Production Budget FitHealth Inc. produces a small and large version of its popular electronic scale...
A: Solution Production budget is a budget that determine the quantity of the firm's product that needs ...
Q: guy Company was organized on January 1, 2019. On that date, it issued 200,000 ordinary shares of P10...
A: Solution Given Authorized share capital 400000 shares Issued as on January 1 2019 (10 par ...
Q: e beginning of the year as an opening entry. C. As soon as the account goes bad. D. At the end of th...
A: The company is following the allowance method for recording bad debt expenses. Under this method an ...
Q: Explain how a flexible budget can be of value to businesses
A: Answer: Flexible budget is the budget which can be estimated as per the quantity for variable cost w...
Q: martlink Computer Services Co. specializes in customized software development for the broadcast and ...
A: Financial ratios are those ratios which help in comparing the line items of balance sheet of the com...
Q: The year-end adjusted trial balance of the Tydne Tool and Die Corporation included the following acc...
A: A journal entry is a form of accounting entry that is used to report a business transaction in a com...
Q: The Goodwill is to be valued at two years' purchase of last four years' average profit. The profits ...
A: Average profit of 4 years = (40,000 + 32,000 + 15,000 + 13,000)/4 = 25,000
Q: company is being offered a special coating for the gasoline underground tank in installing in its se...
A: Solution Given Without special coating With special coating Life 10 years 15 years...
Q: From page 5-6 of the VLN, when does a company write off an account? Group of answer choices A. At th...
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new ques...
Q: Quinine Company has a 12/31 year end and buys a bottling machine to use in its manufacturing plant o...
A: Depreciation means the amount fixed assets written off due to normal wear and tear , normal usage , ...
Electronics Service Company pays salaries monthly on the last day of the month. The following information is available from Electronics for the month ended December 31, Year 1.
Administrative salaries | $ 70,000 |
---|---|
Sales salaries | 59,000 |
Office salaries | 46,000 |
Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries. Duke reached $110,000 before September. His salary in December amounted to $13,000 and is included in the $70,000. No one else will reach the $110,000 amount for the year. None of the employee salaries are subject to
Other amounts withheld from salaries in December were as follows:
Federal income tax | $ 20,000 |
---|---|
State income tax | 6,800 |
Employee savings plan | 3,000 |
Required
a. Prepare the
b. Prepare the journal entry to record the payroll tax expense for Electronics Service Company for December Year 1.
(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- In the space provided below, prepare the journal entry to record the November payroll for all employees assuming that the payroll is paid on November 30 and that Joness cumulative gross pay (cell I13) is 85,000.Payroll accounts and year-end entries The following accounts, with the balances indicated, appear in the ledger of Codigo Co. on December 1 of the current year: The following transactions relating to payroll, payroll deductions, and payroll taxes Occurred during December: Dec. 1. Issued Check No. 815 to Aberderas Insurance Company for 2,520, in payment of the semiannual premium on the group medical insurance policy. 1. Issued Check No. 816 to Alvarez Bank for 8,131, in payment for 2,913 of social security tax, 728 of Medicare tax, and 4,490 of employees federal income tax due. 2. Issued Check No. 817 for 2,300 to Alvarez Bank to invest in a retirement savings account for employees. 12. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: The following transactions relating to payroll, payroll deductions, and payroll taxes Occurred during December: Dec. 1. Issued Check No. 815 to Aberderas Insurance Company for 2,520, in payment of the semiannual premium on the group medical insurance policy. 1. Issued Check No. 816 to Alvarez Bank for 8,131, in payment for 2,913 of social security tax, 728 of Medicare tax, and 4,490 of employees federal income tax due. 2. Issued Check No. 817 for 2,300 to Alvarez Bank to invest in a retirement savings account for employees. 12. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: 12. Issued Check No. 822 in payment of the net amount of the biweekly payroll to fund the payroll bank account. 12. Journalized the entry to record payroll taxes on employees earnings of December12: social security tax, 1,452; Medicare tax, 363; state unemployment tax, 315; federal unemployment tax, 90. 15. Issued Check No. 830 to Alvarez Bank for 7,938, in payment of 2,904 of social security tax, 726 of Medicare tax, and 4,308 of employees federal income tax due. 26. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: 26. Issued Check No. 840 for the net amount of the biweekly payroll to fund the payroll bank account. Dec. 26. Journalized the entry to record payroll taxes on employees earnings of December 26: social security tax, 1,455; Medicare tax, 364; state unemployment tax, 150; federal unemployment tax, 40. 30. Issued Check No. 851 for 6,258 to State Department of Revenue, in payment of employees state income tax due on December 31. 30. Issued Check No. 852 to Alvarez Bank for 2,300 to invest in a retirement savings account for employees. 31. Paid 55,400 to the employee pension plan. The annual pension cost is 65,500. (Record both the payment and the unfunded pension liability.) 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.JOURNALIZING AND POSTING PAYROLL ENTRIES Oxford Company has five employees, All are paid on a monthly basis. The fiscal year of the business is June 1 to May 31. The accounts kept by Oxford Company include the following: The following transactions relating to payrolls and payroll taxes occurred during June and July: REQURED 1. Journalize the preceding transactions using a general journal. 2. Open accounts for the payroll expenses and liabilities. Enter the beginning balances and post the transactions recorded in the journal.
- Payroll accounts and year-end entries The following accounts, with the balances indicated, appear in the ledger of Codigo 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.JOURNALIZING AND POSTING PAYROLL ENTRIES Cascade Company has four employees. All are paid on a monthly basis. The fiscal year of the business is June 1 to May 31. The accounts kept by Cascade include the following: The following transactions relating to payrolls and payroll taxes occurred during June and July: REQUIRED 1. Journalize the preceding transactions using a general journal. 2. Open accounts for the payroll expenses and liabilities. Enter the beginning balances and post the transactions recorded in the journal.Payroll Accounting Jet Enterprises has the following data available for its April 30, 2019, payroll: *All subject to Social Security and Medicare matching and withholding of 6.2% and 1.45%, respectively. Federal unemployment taxes of 0.70% and state unemployment taxes of 0.90% are payable on $405,700 of the wages earned. Required: 1. Compute the amounts of taxes payable and the amount of wages that will be paid to employees. Then prepare the journal entries to record the wages earned and the payroll taxes. ( Note: Round to the nearest penny.) 2. CONCEPTUAL CONNECTION Jet would like to hire a new employee at a salary of $65,000. Assuming payroll taxes are as described above (with unemployment taxes paid on the first $9,000) and fringe benefits (e.g., health insurance, retirement, etc.) are 25% of gross pay, what will be the total cost of this employee for Jet?
- 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: 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 Accounting McLaughlin Manufacturing has the following data available for its March 31, 2019, payroll: *All Subject to Social Security and Medicare matching and withholding at 6.2% and 1.45%, re9eetivety. Federal unemployment taxes of 0.50% and state unemployment taxes of 0.80% are payable on the first $1,000,000. Required: 1. Compute the taxes payable and wages that will be paid to employees. Then prepare the journal entries to record the wages earned and the payroll taxes. ( Note: Round to the nearest penny) 2. CONCEPTUAL CONNECTION McLaughlin Manufacturing would like to hire a new employee at a salary of $80,000. Assuming payroll taxes are as described above (with unemployment taxes paid on the first $7,000) and fringe benefits (e.g., health insurance, retirement, etc.) are 28% of gross pay, what will be the total cost of this employee for McLaughlin?Recording payroll and payroll taxes The following information about the payroll for the week ended October 4 was obtained from the records of Simkins Mining Co.: Instructions Illustrate the effect un (he accounts and financial statements of recording the liability for the October 4 employer payroll taxes.
- Payment and distribution of payroll The general ledger of Berskshire Mountain Manufacturing Inc. showed the following credit balances on January 15: Direct labor earnings amounted to 10,500 from January 16 to 31. Indirect labor was 5,700, and sales and administrative salaries for the same period amounted to 3,800. All wages are subject to FICA, FUTA, state unemployment taxes, and 10% income tax withholding. Required: 1. Prepare the journal entries for the following: a. Recording the payroll. b. Paying the payroll. c. Recording the employers payroll tax liability. d. Distributing the payroll costs for January 1631. 2. Prepare the journal entry to record the payment of the amounts due for the month to the government for FICA and income tax withholdings. 3. Calculate the amount of total earnings for the period from January 1 to 15. 4. Should the same person be responsible for computing the payroll, paying the payroll and making the entry to distribute the payroll? Why or why not?Reviewing payroll records indicates that employee salaries that are due to be paid on January 3 include $3,575 in wages for the last week of December. There was no previous balance in the Salaries Payable account at that time. Based on the information provided, make the December 31 adjusting journal entry to bring the balances to correct.In the Illustrative Case in this chapter, payroll transactions for Brookins Company were analyzed, journalized, and posted for the third quarter of the fiscal year. In this problem, you are to record the payroll transactions for the last quarter of the firms fiscal year. The last quarter begins on April 1, 20--. Refer to the Illustrative Case on pages 6-27 to 6-33 and proceed as follows: a. Analyze and journalize the transactions described in the following narrative. Use the two-column journal paper provided on pages 6-73 to 6-77. Omit the writing of explanations in the journal entries. b. Post the journal entries to the general ledger accounts on pages 6-78 to 6-83. Narrative of Transactions: c. Answer the following questions: 1. The total amount of the liability for FICA taxes and federal income taxes withheld as of June 30 is................................................................................ ________ 2. The total amount of the liability for state income taxes withheld as of June 30 is................................................................................................................ ________ 3. The amount of FUTA taxes that must be paid to the federal government on or before August 1 (assume July 31 is a Sunday) is........................................ ________ 4. The amount of contributions that must be paid into the state unemployment compensation fund on or before August 1 is.................................................. ________ 5. The total amount due the treasurer of the union is........................................ ________ 6. The total amount of wages and salaries expense since the beginning of the fiscal year is ................................................................................................... ________ 7. The total amount of payroll taxes expense since the beginning of the fiscal year is ............................................................................................................ ________ 8. Using the partial journal below, journalize the entry to record the vacation accrual at the end of the companys fiscal year. The amount of Brookins Companys vacation accrual for the fiscal year is 15,000.