BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

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.

images

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. 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.)

1.

To determine

Complete the Company K’s payroll register.

Explanation

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.

To determine

Prepare journal entry to record the payroll as of December 14.

3.

To determine

Prepare journal entry to record the payroll taxes as of December 14.

4.

To determine

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.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Why is developing a well-written marketing plan important?

Foundations of Business (MindTap Course List)

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)

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)

What factors distinguish data from information?

Pkg Acc Infor Systems MS VISIO CD