BuyFindarrow_forward

Survey of Accounting (Accounting I)

8th Edition
Carl Warren
ISBN: 9781305961883

Solutions

Chapter
Section
BuyFindarrow_forward

Survey of Accounting (Accounting I)

8th Edition
Carl Warren
ISBN: 9781305961883
Textbook Problem

Recording payroll and payroll taxes

The following information about the payroll for the week ended October 4 was obtained from the records of Simkins Mining Co.:

Instructions
Illustrate the effect un (he accounts and financial statements of recording the liability for the October 4 employer payroll taxes.

To determine

Concept Introduction:

Payroll means that amount of money that employer pays to the employees against the services provided by the employees to the employers. The payroll includes salaries of the employees.

Payroll tax is the amount of tax levied on the payroll paid. As per FICA (Federal Insurance Contribution Act), from the payment of payroll by the employers to employees, employers have to withhold a percentile part from that payment.

To show:

The effect on the accounts and financial statements for employer payroll taxes.

Explanation

  Total payroll tax expense=FICA tax+SUTA tax+FUTA tax=$6,750+$3,780+$720=$11,250

Income Statement

    Particulars  ($)Amount
      ($)
    Payroll tax expense  (11,250)

Balance Sheet

      ($)

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

REQUIRED RATE OF RETURN Assume that the risk-free rate is 6% and the required return on the market is 13%. What...

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

Explain how absolute advantage and comparative advantage differ.

Principles of Macroeconomics (MindTap Course List)

What is venture capital? An angel investor? A private placement?

Foundations of Business (MindTap Course List)

What is a logical DFD?

Pkg Acc Infor Systems MS VISIO CD

Describe three ways that a risk-averse person might reduce the risk she faces.

Brief Principles of Macroeconomics (MindTap Course List)

Explain how backflush costing works.

Cornerstones of Cost Management (Cornerstones Series)