The information on earnings and deductions for the pay period ended December 14 from King Company's payroll records is as follows: Beginning Cumulative Name Gross Pay Earnings Burgess, J. L. $426 $6,763 Clayton, M. E. 760 40,434 Drugden, T. F. 881 38,253 Lui, L. W. 1,096 39,918 Sparks, C. R. 4,145 114,943 Stevers, D. H. 848 6,781 For each employee, the Social Security tax is 6.2 percent of the first $118,500 and the employer's Social Security tax is 6.2 percent on the same earnings limit. The Medicare tax is 1.45 percent on all earnings. The federal unemployment tax rate is 0.6 percent of the first $7,000 of earnings of each employee. The state unemployment tax rate is 5.4 percent of the same base. Determine the total taxable earnings for unemployment, Social Security, and Medicare. If an amount is zero, enter "0". NAME BEGINNINGCUMULATIVEEARNINGS TOTALEARNINGS ENDINGCUMULATIVEEARNINGS TAXABLE EARNINGS UNEMPLOY-MENT SOCIALSECURITY MEDICARE Burgess, J. L. Clayton, M. E. Drugden, T. F. Lui, L. W. Sparks, C. R. Stevers, D. H. Total Feedback Partially correct Prepare a general journal entry to record the employer's payroll taxes. 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. GENERAL JOURNAL PAGE DATE DESCRIPTION DOC. NO. POST. REF. DEBIT CREDIT 20-- Dec. 14 Wages Expense State Unemployment Tax Expense To record employer's share of FICA taxes and employer's state and federal unemployment taxes.

The information on earnings and deductions for the pay period ended December 14 from King Company's payroll records is as follows: Beginning Cumulative Name Gross Pay Earnings Burgess, J. L. $426 $6,763 Clayton, M. E. 760 40,434 Drugden, T. F. 881 38,253 Lui, L. W. 1,096 39,918 Sparks, C. R. 4,145 114,943 Stevers, D. H. 848 6,781 For each employee, the Social Security tax is 6.2 percent of the first $118,500 and the employer's Social Security tax is 6.2 percent on the same earnings limit. The Medicare tax is 1.45 percent on all earnings. The federal unemployment tax rate is 0.6 percent of the first $7,000 of earnings of each employee. The state unemployment tax rate is 5.4 percent of the same base. Determine the total taxable earnings for unemployment, Social Security, and Medicare. If an amount is zero, enter "0". NAME BEGINNINGCUMULATIVEEARNINGS TOTALEARNINGS ENDINGCUMULATIVEEARNINGS TAXABLE EARNINGS UNEMPLOY-MENT SOCIALSECURITY MEDICARE Burgess, J. L. Clayton, M. E. Drugden, T. F. Lui, L. W. Sparks, C. R. Stevers, D. H. Total Feedback Partially correct Prepare a general journal entry to record the employer's payroll taxes. 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. GENERAL JOURNAL PAGE DATE DESCRIPTION DOC. NO. POST. REF. DEBIT CREDIT 20-- Dec. 14 Wages Expense State Unemployment Tax Expense To record employer's share of FICA taxes and employer's state and federal unemployment 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 4E

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Question

The information on earnings and deductions for the pay period ended December 14 from King Company's payroll records is as follows:

		Beginning
		Cumulative
Name	Gross Pay	Earnings
Burgess, J. L.	$426	$6,763
Clayton, M. E.	760	40,434
Drugden, T. F.	881	38,253
Lui, L. W.	1,096	39,918
Sparks, C. R.	4,145	114,943
Stevers, D. H.	848	6,781

For each employee, the Social Security tax is 6.2 percent of the first $118,500 and the employer's Social Security tax is 6.2 percent on the same earnings limit. The Medicare tax is 1.45 percent on all earnings. The federal unemployment tax rate is 0.6 percent of the first $7,000 of earnings of each employee. The state unemployment tax rate is 5.4 percent of the same base.

Determine the total taxable earnings for unemployment, Social Security, and Medicare. If an amount is zero, enter "0".

NAME	BEGINNING CUMULATIVE EARNINGS	TOTAL EARNINGS	ENDING CUMULATIVE EARNINGS	TAXABLE EARNINGS
UNEMPLOY- MENT	SOCIAL SECURITY	MEDICARE
Burgess, J. L.
Clayton, M. E.
Drugden, T. F.
Lui, L. W.
Sparks, C. R.
Stevers, D. H.
Total

Feedback

Partially correct

Prepare a general journal entry to record the employer's payroll taxes. 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.

GENERAL JOURNAL	PAGE
DATE	DESCRIPTION	DOC. NO.	POST. REF.	DEBIT	CREDIT
20--
Dec. 14	Wages Expense
	State Unemployment Tax Expense



	To record employer's share of FICA taxes and employer's state and federal unemployment taxes.

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