The following is a payroll sheet for Otis Imports for the month of September 2020. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% FICA tax on employee and employer on a maximum of $128,400. In addition, 1.45% is charged both employer and employee for an employee’s wages in excess of $128,400 per employee.
to Aug. 31
Complete the payroll sheet and make the necessary entry to record the payment of the payroll.
Make the entry to record the payroll tax expenses of Otis Imports.
Make the entry to record the payment of the payroll liabilities created. Assume that the company pays all payroll liabilities at the end of each month.
Journal entry for payment of payroll:
Journal entry for payrol...
Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*See Solution
Q: Can you explain the solution below ? how did they calculate the sales revenue ? It doesn't make sens...
A: This budget can be understood in the following manner :
Q: On January 1, 2019, Bailey Industries had shares outstanding as follows.6% cumulative preference sha...
A: Earnings per share is a financial ratio that indicates a company’s ability to earn revenue for its c...
Q: The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is thi...
A: Click to see the answer
Q: Cost classifications For each of the following costs, check the column(s) that most likely applies (...
A: Fixed cost: A fixed cost is a cost incurred by a company that remains fixed irrespective of the volu...
Q: Process Costing in Sugar Manufacturing The food-processing industry, like most process industries, i...
A: Process Costing: It is a method of cost accounting used by an enterprise with processes categorised ...
Q: I'm not sure how to start working this problem Exercise 6-1 Waterway Sports sells volleyball kits ...
A: Flexible budget: A flexible budget is referred as a thorough plan for controlling the fixed and vari...
Q: Required information Problem 14-44 (LO 14-2) The following information applies to the questions disp...
A: Calculating the value of total taxable income and federal income tax. We have,
Q: HOW DO I FIGURE OUT RETAINED EARNINGS on an income statement
A: Retained earnings is the amount retained from the profits of the company after deducting dividends a...
Q: *Problem 11-2A (Part Level Submission) The stockholders’ equity accounts of Cheyenne Corp. on ...
A: Calculating the value of dividends paid to common stockholder. We have,The value of dividend paid to...