a. Explanation Payroll: The total payment that a company is required to pay to its employee for the services received is called as payroll. Payroll withholding deduction: The amounts which the employer withheld from employees’ gross pay to deduct taxes such as federal income tax, state income tax, local income tax, and social security tax are called payroll withholding deduction. Employer payroll taxes: The taxes which the employer must pay to the employees with their salaries are called employer payroll taxes. Such taxes are not withheld from employees’ gross earnings but instead they are paid by employer. Prepare journal entry to record the payroll for the week of June 17. Date Accounts and Explanation Post Ref Debit ($) Credit ($) June 17 Wages Expense 240,000 Social Security Taxes Payable (1) 14,400 Medicare Taxes Payable (2) 3,600 Employee Federal Income Taxes Payable 48,000 Wages payable 174,000 (To record salaries expense and payroll withholdings) Table (1) Wages expense is an expense and it decreases equity value... b. To determine Journalize the payroll taxes expense incurred for the week of May 18.

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ISBN: 9781305088436

Author: Carl Warren, Jim Reeve, Jonathan Duchac

Publisher: Cengage Learning

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Question

Chapter 11, Problem 13E

To determine

Journalize the entry to payroll for the week of June 17.

To determine

Journalize the payroll taxes expense incurred for the week of May 18.

Expert Solution & Answer

Chapter 11 Solutions

Financial Accounting

Ch. 11 - Does a discounted note payable provide credit...Ch. 11 - Employees are subject to taxes withheld from their...Ch. 11 - Prob. 3DQ Ch. 11 - Prob. 4DQ Ch. 11 - Prob. 5DQ Ch. 11 - Prob. 6DQ Ch. 11 - Prob. 7DQ Ch. 11 - Prob. 8DQ Ch. 11 - When should the liability associated with a...Ch. 11 - Prob. 10DQ

Ch. 11 - On October 12, Belleville Co. borrowed cash from...Ch. 11 - Proceeds from notes payable On January 26, Nyree...Ch. 11 - Prob. 2PEA Ch. 11 - Prob. 2PEB Ch. 11 - Prob. 3PEA Ch. 11 - Prob. 3PEB Ch. 11 - The payroll register of Konrath Co. indicates...Ch. 11 - Journalize period payroll The payroll register of...Ch. 11 - Prob. 5PEA Ch. 11 - Prob. 5PEB Ch. 11 - Prob. 6PEA Ch. 11 - Prob. 6PEB Ch. 11 - Prob. 7PEA Ch. 11 - Prob. 7PEB Ch. 11 - Quick ratio Nabors Company reported the following...Ch. 11 - Quick ratio Adieu Company reported the following...Ch. 11 - Bon Nebo Co. sold 25,000 annual subscriptions of...Ch. 11 - Entries for notes payable Cosimo Enterprises...Ch. 11 - Evaluating alternative notes A borrower has two...Ch. 11 - Entries for notes payable A business issued a...Ch. 11 - A business issued a 60-day note for 75,000 to a...Ch. 11 - On June 30, Collins Management Company purchased...Ch. 11 - Prob. 7E Ch. 11 - Prob. 8E Ch. 11 - Prob. 9E Ch. 11 - Summary payroll data In the following summary of...Ch. 11 - Prob. 11E Ch. 11 - The payroll register for Proctor Company for the...Ch. 11 - Prob. 13E Ch. 11 - Prob. 14E Ch. 11 - Prob. 15E Ch. 11 - A business provides its employees with varying...Ch. 11 - Prob. 17E Ch. 11 - Prob. 18E Ch. 11 - Prob. 19E Ch. 11 - Accrued product warranty General Motors...Ch. 11 - Prob. 21E Ch. 11 - Quick ratio Gmeiner Co. had the following current...Ch. 11 - The current assets and current liabilities for...Ch. 11 - The following items were selected from among the...Ch. 11 - The following information about the payroll for...Ch. 11 - Prob. 3PA Ch. 11 - Prob. 4PA Ch. 11 - Payroll accounts and year-end entries The...Ch. 11 - Prob. 1PB Ch. 11 - Entries for payroll and payroll taxes The...Ch. 11 - Jocame Inc. began business on January 2, 2015....Ch. 11 - Prob. 4PB Ch. 11 - Payroll accounts and year-end entries The...Ch. 11 - Prob. 3CPP Ch. 11 - Tonya Latirno is a certified public accountant...Ch. 11 - Recognizing pension expense The annual examination...Ch. 11 - Prob. 3CP Ch. 11 - Prob. 5CP

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Similar questions

On January 21, the column totals of the payroll register for Great Products Company showed that its sales employees had earned 14,960, its truck driver employees had earned 10,692, and its office employees had earned 8,670. Social Security taxes were withheld at an assumed rate of 6.2 percent, and Medicare taxes were withheld at an assumed rate of 1.45 percent. Other deductions consisted of federal income tax, 3,975, and union dues, 560. Determine the amount of Social Security and Medicare taxes withheld and record the general journal entry for the payroll, crediting Salaries Payable for the net pay. All earnings were taxable. Round amounts to the nearest penny.
On January 21, the column totals of the payroll register for Great Products Company showed that its sales employees had earned 14,960, its truck driver employees had earned 10,692, and its office employees had earned 8,670. Social Security taxes were withheld at an assumed rate of 6.2 percent, and Medicare taxes were withheld at an assumed rate of 1.45 percent. Other deductions consisted of federal income tax, 3,975, and union dues, 560. Determine the amount of Social Security and Medicare taxes withheld and record the general journal entry for the payroll, crediting Salaries Payable for the net pay. All earnings were taxable. Round amounts to the nearest penny.
Payrex Co. has six employees. All are paid on a weekly basis. For the payroll period ending January 7, total employee earnings were 12,500, all of which were subject to SUTA, FUTA, Social Security, and Medicare taxes. The SUTA tax rate in Payrexs state is 5.4%, but Payrex qualifies for a rate of 2.0% because of its good record of providing regular employment to its employees. Other employer payroll taxes are at the rates described in the chapter. REQUIRED 1. Calculate Payrexs FUTA, SUTA, Social Security, and Medicare taxes for the week ended January 7. 2. Prepare the journal entry for Payrexs payroll taxes for the week ended January 7. 3. What amount of payroll taxes did Payrex save because of its good employment record?

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