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The information for Titan Company, shown in the following chart, is available from Titan’s time records and the employees’ individual earnings records for the pay period ended December 22. Taxable earnings for Social Security are based on the first $ 118,500. Taxable earnings for Medicare are based on all earnings. Taxable earnings for federal and state unemployment are based on the first $7,000. The company does not pay for overtime hours. Required 1. Complete the payroll register using a Social Security tax rate of 6.2 percent and a Medicare tax rate of 1.45 percent. Concerning Other Deductions, AR refers to Accounts Receivable and UW refers to United Way. Begin payroll checks in the payroll register with No. 2914. 2. Prepare the general journal entry to record the payroll. The firm’s general ledger contains a Salary Expense account and a Salaries Payable account. 3. Prepare the general journal entry to pay the payroll. Assume that funds for this payroll have been transferred to Cash—Payroll Bank Account and that this entry has been made.

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College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
Publisher: South-Western College Pub
ISBN: 9781337280570
BuyFind

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
Publisher: South-Western College Pub
ISBN: 9781337280570

Solutions

Chapter
Section
Chapter 7, Problem 4PA
Textbook Problem

The information for Titan Company, shown in the following chart, is available from Titan’s time records and the employees’ individual earnings records for the pay period ended December 22.

Chapter 7, Problem 4PA, The information for Titan Company, shown in the following chart, is available from Titans time

Taxable earnings for Social Security are based on the first $ 118,500. Taxable earnings for Medicare are based on all earnings. Taxable earnings for federal and state unemployment are based on the first $7,000. The company does not pay for overtime hours.

Required

  1. 1. Complete the payroll register using a Social Security tax rate of 6.2 percent and a Medicare tax rate of 1.45 percent. Concerning Other Deductions, AR refers to Accounts Receivable and UW refers to United Way. Begin payroll checks in the payroll register with No. 2914.
  2. 2. Prepare the general journal entry to record the payroll. The firm’s general ledger contains a Salary Expense account and a Salaries Payable account.
  3. 3. Prepare the general journal entry to pay the payroll. Assume that funds for this payroll have been transferred to Cash—Payroll Bank Account and that this entry has been made.

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