Kay’s Agency has the following payroll information for the week 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 $113,700 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. 5923 in the payroll register. 2. Prepare a general journal entry to record the payroll as of December 14. 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 14. 4. Journalize the entry to pay the payroll on December 16. (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 ...

12th Edition
Cathy J. Scott
Publisher: Cengage Learning
ISBN: 9781305084087
BuyFind

College Accounting (Book Only): A ...

12th Edition
Cathy J. Scott
Publisher: Cengage Learning
ISBN: 9781305084087

Solutions

Chapter
Section
Chapter 8, Problem 2PB
Textbook Problem

Kay’s Agency has the following payroll information for the week

Chapter 8, Problem 2PB, Kays Agency has the following payroll information for the week Assumed tax rates are as follows: a.

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 $113,700 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. 1. Complete the payroll register. Payroll checks begin with Ck. No. 5923 in the payroll register.
  2. 2. Prepare a general journal entry to record the payroll as of December 14. 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 14.
  4. 4. Journalize the entry to pay the payroll on December 16. (Assume that the company has transferred cash to the Cash—Payroll Bank Account for this payroll.)

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Chapter 8 Solutions

College Accounting (Book Only): A Career Approach
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