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

Go Systems had the following payroll data for wages for the week ended February 5. The state income tax is assumed to be 20% of the federal income tax.

images

  1. a. Prepare the general journal entry to record the payroll.
  2. b. Prepare the general journal entry to record the employer’s payroll taxes. Assume rates of 0.6 percent for federal unemployment tax and 5.4 percent for state unemployment tax based on the first $7,000 for each employee. Also assume that no employee has earned more than $7,000. Round answers to two decimal places.

1.

To determine

Prepare journal entry to record the given transaction.

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.

Prepare journal entry to record the given transaction.

DateAccount Title and explanationDebit ($)Credit ($)
February 5Wages expense6,770.00 
 Employee federal income tax payable 1,015.00
 FICA-Social Security taxes payable ($6,770×6.2%) 419.74
 FICA-Medicare Taxes payable ($6,770×1.45%) 98

2.

To determine

Prepare journal entry to record the given transaction.

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

What is the database model?

Accounting Information Systems

REAUZED RATES OF RETURN Stocks A and B have the following historical returns: Year Stock As Returns, rA Stock B...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

How does a cost-efficient capital market help reduce the prices of goods and services?

Fundamentals of Financial Management (MindTap Course List)

In what ways is economics a science?

Principles of Macroeconomics (MindTap Course List)