Sandhill Company’s payroll for December 2017 is summarized below. Amount Subject to Unemployment Taxes Payroll Wages Due Federal State Headquarters $210,000 $27,000 $7,000 Sales Office #1 57,000 7,000 2,000 Sales Office #2 47,000 4,000 1,000 Total $314,000 $38,000 $10,000 The state unemployment tax rate is 5.5%. However, Sandhill receives a 3.5% merit adjustment, bringing its effective state unemployment rate to 2.0%. The FICA rate is 7.65% on an employee’s wages to $140,000 and 1.45% in excess of $140,000. Of the $314,000 wages potentially subject to FICA tax, the following amounts are in excess of $140,000. Headquarters $21,000 Sales Office #1 24,000 Sales Office #2 19,000 The federal unemployment tax rate is 0.8% after credits. Income and payroll tax withheld amount to $24,000 for headquarters, $8,000 for sales office #1, and $7,700 for sales office #2. Prepare a schedule showing the employer’s total cost of wages for November by function. Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer’s payroll taxes
Sandhill Company’s payroll for December 2017 is summarized below. Amount Subject to Unemployment Taxes Payroll Wages Due Federal State Headquarters $210,000 $27,000 $7,000 Sales Office #1 57,000 7,000 2,000 Sales Office #2 47,000 4,000 1,000 Total $314,000 $38,000 $10,000 The state unemployment tax rate is 5.5%. However, Sandhill receives a 3.5% merit adjustment, bringing its effective state unemployment rate to 2.0%. The FICA rate is 7.65% on an employee’s wages to $140,000 and 1.45% in excess of $140,000. Of the $314,000 wages potentially subject to FICA tax, the following amounts are in excess of $140,000. Headquarters $21,000 Sales Office #1 24,000 Sales Office #2 19,000 The federal unemployment tax rate is 0.8% after credits. Income and payroll tax withheld amount to $24,000 for headquarters, $8,000 for sales office #1, and $7,700 for sales office #2. Prepare a schedule showing the employer’s total cost of wages for November by function. Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer’s payroll taxes
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 2PB
Related questions
Question
Sandhill Company’s payroll for December 2017 is summarized below.
The state unemployment tax rate is 5.5%. However, Sandhill receives a 3.5% merit adjustment, bringing its effective state unemployment rate to 2.0%. The FICA rate is 7.65% on an employee’s wages to $140,000 and 1.45% in excess of $140,000. Of the $314,000 wages potentially subject to FICA tax, the following amounts are in excess of $140,000.
The federal unemployment tax rate is 0.8% after credits. Income and payroll tax withheld amount to $24,000 for headquarters, $8,000 for sales office #1, and $7,700 for sales office #2.
|
Amount Subject to
|
||||||
|---|---|---|---|---|---|---|
|
Payroll
|
Wages Due
|
Federal
|
State
|
|||
| Headquarters | $210,000 | $27,000 | $7,000 | |||
| Sales Office #1 | 57,000 | 7,000 | 2,000 | |||
| Sales Office #2 | 47,000 | 4,000 | 1,000 | |||
| Total | $314,000 | $38,000 | $10,000 |
The state unemployment tax rate is 5.5%. However, Sandhill receives a 3.5% merit adjustment, bringing its effective state unemployment rate to 2.0%. The FICA rate is 7.65% on an employee’s wages to $140,000 and 1.45% in excess of $140,000. Of the $314,000 wages potentially subject to FICA tax, the following amounts are in excess of $140,000.
| Headquarters | $21,000 | |
| Sales Office #1 | 24,000 | |
| Sales Office #2 | 19,000 |
The federal unemployment tax rate is 0.8% after credits. Income and payroll tax withheld amount to $24,000 for headquarters, $8,000 for sales office #1, and $7,700 for sales office #2.
Prepare a schedule showing the employer’s total cost of wages for November by function.
Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer’s payroll taxes
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
Knowledge Booster
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
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning