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Complete Accounting Services has the following payroll information for the week ended December 7. State income tax is computed as 20 percent of federal income tax. Assumed tax rates are as follows: a. FICA: Social Security, (employer) 6.2 percent (0.062) and (employee) 6.2 percent (0.062) on the first $118,500 for each employee, and Medicare, 1.45 percent (0.0145) on all earnings for each employee. b. State unemployment tax, 5.4 percent (0.054) on the first $7,000 for each employee. c. Federal unemployment tax, 0.6 percent (0.006) on the first $7,000 for each employee. Required 1. Complete the payroll register. Payroll checks begin with Ck. No. 5714 in the payroll register. 2. Prepare a general journal entry to record the payroll as of December 7. The company’s general ledger contains a Salary Expense account and a Salaries Payable account. 3. Prepare a general journal entry to record the payroll taxes as of December 7. 4. Journalize the entry to pay the payroll on December 9. (Assume that the company has transferred cash to the Cash—Payroll Bank Account for this payroll.)

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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 8, Problem 2PA
Textbook Problem

Complete Accounting Services has the following payroll information for the week ended December 7. State income tax is computed as 20 percent of federal income tax.

Chapter 8, Problem 2PA, Complete Accounting Services has the following payroll information for the week ended December 7.

Assumed tax rates are as follows:

  1. a. FICA: Social Security, (employer) 6.2 percent (0.062) and (employee) 6.2 percent (0.062) on the first $118,500 for each employee, and Medicare, 1.45 percent (0.0145) on all earnings for each employee.
  2. b. State unemployment tax, 5.4 percent (0.054) on the first $7,000 for each employee.
  3. c. Federal unemployment tax, 0.6 percent (0.006) on the first $7,000 for each employee.

Required

  1. 1. Complete the payroll register. Payroll checks begin with Ck. No. 5714 in the payroll register.
  2. 2. Prepare a general journal entry to record the payroll as of December 7. The company’s general ledger contains a Salary Expense account and a Salaries Payable account.
  3. 3. Prepare a general journal entry to record the payroll taxes as of December 7.
  4. 4. Journalize the entry to pay the payroll on December 9. (Assume that the company has transferred cash to the Cash—Payroll Bank Account for this payroll.)

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