College Accounting (Book Only): A ...
Solutions
College Accounting (Book Only): A ...
Kay’s Agency has the following payroll information for the week ended December 14. 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. 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.)
1.
Complete the Company K’s payroll register.
Payroll:
Payroll refers to the total amount that is required to be paid by the company to its employees during a week, month or other period. It is the financial record of the wages and bonus, net pay, salary and deductions of a company’s employees.
2.
Prepare journal entry to record the payroll as of December 14.
3.
Prepare journal entry to record the payroll taxes as of December 14.
4.
Prepare journal entry to record the payroll as of December 16 by assuming that the company has transferred cash to the cash-payroll bank account.
Chapter 8 Solutions
Additional Business Solutions
Find more solutions based on key concepts
Show solutions addThe series of five transactions recorded in the following T accounts were related to a sale to a customer on ac...
Financial Accounting
PETTY CASH RECORD AND JOURNAL ENTRIES On July 1, a petty cash fund was established for 100. The following vouch...
College Accounting, Chapters 1-27
PAYROLL FRAUD John Smith worked in the stockyard of a large building supply company. One day he unexpectedly le...
Accounting Information Systems
Contribution Margin, Unit Amounts, Break-Even Units Information on four independent companies follows. Calculat...
Managerial Accounting: The Cornerstone of Business Decision-Making
Under what circumstances might the activity-based costing method provide more accurate product costs than (lie ...
Financial & Managerial Accounting
Entries into T accounts and trial balance Marjorie Knaus, an architect, organized Knaus Architects on January 1...
Corporate Financial Accounting
In 2019, Dreyer Corp. began construction work under a 3-year contract, which represents a single performance ob...
Intermediate Accounting: Reporting And Analysis
Rockport Industries Inc. gathered the following data for March: a.Compute the revenue price variance. b.Compute...
Financial And Managerial Accounting
Instruction Message: E-Mail Inviting Down-Editing Needs Revision. The following message, which originated in an...
Essentials of Business Communication (MindTap Course List)
Discuss each of the following statements from the standpoints of equality and efficiency. a. Everyone in societ...
Principles of Microeconomics (MindTap Course List)
Would each of the following increase, decrease, or have an indeterminant effect on a firm's break-even point (u...
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Why is developing a well-written marketing plan important?
Foundations of Business (MindTap Course List)
What are the most important limitations of the applications approach to business information system design?
Accounting Information Systems
Explain the criteria for stating good marketing objectives
MKTG 12:STUDENT ED.-TEXT
Why do you think Mary Parker Follett’s ideas tended to be popular with business people of her day but were igno...
Management, Loose-Leaf Version
The Hawaii Visitors Bureau collects data on visitors to Hawaii. The following questions were among 16 asked in ...
STATISTICS F/BUSINESS+ECONOMICS-TEXT
(Price Leadership) Why might a price-leadership model of oligopoly not be an effective means of collusion in an...
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
What adverse effect might be caused by tax incentives to increase saving?
Principles of Economics (MindTap Course List)
REPLACEMENT ANALYSIS The Dauten Toy Corporation currently uses an injection molding machine that was purchased ...
Fundamentals of Financial Management (MindTap Course List)
Under what conditions is the production possibilities frontier linear rather than bowed out?
Principles of Macroeconomics (MindTap Course List)
Chapter 2 explains the difference between positive analysis and normative analysis. In the debate about whether...
Brief Principles of Macroeconomics (MindTap Course List)
Explain how relation-ship marketing can move customers up the loyalty ladder.
Contemporary Marketing
If a nation has high and persistent inflation, the most likely explanation is a. the central bank creating exce...
Essentials of Economics (MindTap Course List)
Seth Feye established Reliance Financial Services on July 1, 2016. Reliance Financial Services offers financial...
Financial Accounting
What is meant by reporting by the principle of exceptions as the term is used in reference to cost control?
Financial & Managerial Accounting
Why is it a good practice to post daily to the accounts receivable or accounts payable ledgers?
College Accounting (Book Only): A Career Approach
Activity-based costing Southeastern Paper Company manufactures three products (computer paper, newsprint, and s...
Accounting (Text Only)
A trade discount is a reduction from the list or catalog price offered to different classes of customers.
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
The U.S. Justice Department has been worried that the nation' s four largest air carriers—Delta, Southwest, A...
Exploring Economics
INTEREST RATE DETERMINATION AND YIELD CURVES a. What effect would each of the following events likely have on t...
Fundamentals of Financial Management (MindTap Course List)
FINANCIAL LEVERAGE EFFECTS The Neal Company wants to estimate next year's return on equity (ROE) under differen...
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
A survey of 131 investment managers in Barrons Big Money poll revealed the following: 43% of managers classifie...
Statistics for Business & Economics, Revised (MindTap Course List)
With the economy in a recession because of inadequate aggregate demand, the government increases its purchases ...
Principles of Macroeconomics (MindTap Course List)
What factors distinguish data from information?
Pkg Acc Infor Systems MS VISIO CD
Effect of omitting adjustment At the end of August, the first month of the business year, the usual adjustment ...
Survey of Accounting (Accounting I)
The names of the employees of Hogan Thrift Shop are listed on the following payroll register. Employees are pai...
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Classifying types of adjustments Classify the following items as (A) prepaid expense, (B) unearned revenue, (C)...
Corporate Financial Accounting
Fisico Company produces exercise bikes. One of its plants produces two versions: a standard model and a deluxe ...
Cornerstones of Cost Management (Cornerstones Series)
In the model in Example 7.9, stock 2 is not in the optimal portfolio. Use SolverTable to see whether it ever en...
Practical Management Science
One reason for the upward-sloping short-run aggregate supply curve (SRAS) is a. a fixed CPI market basket. b. p...
Economics For Today
What types of information can a supplier provide that are useful during new-product development?
Purchasing and Supply Chain Management
The prices of houses, cars, and television sets have increased. Has there been inflation?
Macroeconomics
How might the price of corn affect the supply of wheat?
Microeconomics
How does a vertical merger differ from a horizontal merger? Why would the government look more carefully at one...
Economics (MindTap Course List)
