Explanation Payroll tax: Payroll tax refers to the tax that are equally contributed by employees and employer based on the salary and wages of an employee. Payroll tax includes taxes like federal tax, local income tax, state tax, social security tax and federal and state unemployment tax. Prepare journal entry to record the deposit of the employees’ federal income taxes and the Social Security and Medicare taxes on April 15. Date Account Title and explanation Post. ref Debit ($) Credit ($) April 15 FICA-Social Security taxes payable 6,750.00 FICA-Medicare Taxes payable 1,575.00 Employee federal income tax payable 4,095.00 Cash 12,420.00 (To record the employer payroll taxes for the week ended April 15.) Table (1) FICA tax – social and security tax payable is a liability and there is a decrease in the value of liability. Hence, debit the FICA tax – social and security tax payable by $6,750.00. FICA tax – medical tax payable is a liability and there is a decrease in the value of liability. Hence, debit the FICA tax – medical tax payable by $1,575.00. Employee federal income tax payable is a liability and it is decreased. Hence, debit employee federal income tax payable by $4,095.00. Cash is an asset and there is a decrease in the value of an asset...

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN: 9781305666160

Author: James A. Heintz, Robert W. Parry

Publisher: Cengage Learning

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Question

Chapter 9, Problem 3CE

To determine

Prepare journal entry to record the given transactions.

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Chapter 9 Solutions

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

Ch. 9 - Prob. 1TF Ch. 9 - Prob. 2TF Ch. 9 - Prob. 3TF Ch. 9 - Prob. 4TF Ch. 9 - The W-4, which shows total annual earnings and...Ch. 9 - Prob. 1MC Ch. 9 - LO2 Joyce Lee earns 30,000 a year. Her employer...Ch. 9 - Prob. 3MC Ch. 9 - Prob. 4MC Ch. 9 - Prob. 5MC

Ch. 9 - Total earnings for the employees of Garys Grill...Ch. 9 - Prob. 2CE Ch. 9 - Prob. 3CE Ch. 9 - Prob. 4CE Ch. 9 - Prob. 1RQ Ch. 9 - Prob. 2RQ Ch. 9 - Prob. 3RQ Ch. 9 - Prob. 4RQ Ch. 9 - Prob. 5RQ Ch. 9 - Identify all items that are debited or credited to...Ch. 9 - Prob. 7RQ Ch. 9 - Prob. 8RQ Ch. 9 - Prob. 9RQ Ch. 9 - Prob. 10RQ Ch. 9 - Prob. 11RQ Ch. 9 - Prob. 12RQ Ch. 9 - Prob. 13RQ Ch. 9 - CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL...Ch. 9 - CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL...Ch. 9 - CALCULATION OF TAXABLE EARNINGS AND EMPLOYER...Ch. 9 - Prob. 4SEA Ch. 9 - JOURNAL ENTRIES FOR PAYMENT OF EMPLOYER PAYROLL...Ch. 9 - Prob. 6SEA Ch. 9 - Prob. 7SPA Ch. 9 - JOURNALIZING AND POSTING PAYROLL ENTRIES Cascade...Ch. 9 - Prob. 9SPA Ch. 9 - CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL...Ch. 9 - Prob. 2SEB Ch. 9 - Prob. 3SEB Ch. 9 - TOTAL COST OF EMPLOYEE B. F. Goodson employs...Ch. 9 - JOURNAL ENTRIES FOR PAYMENT OF EMPLOYER PAYROLL...Ch. 9 - Prob. 6SEB Ch. 9 - CALCULATING PAYROLL TAXES EXPENSE AND PREPARING...Ch. 9 - JOURNALIZING AND POSTING PAYROLL ENTRIES Oxford...Ch. 9 - Prob. 9SPB Ch. 9 - The director of the art department at an...Ch. 9 - Prob. 1EC Ch. 9 - The totals line from Nix Companys payroll register...Ch. 9 - Payrex Co. has six employees. All are paid on a...

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Similar questions

For tax purposes, assume that the maximum taxable earnings are 118,500 for Social Security and 7,000 for the unemployment tax and that all earnings are taxable for Medicare. For the payroll register for the month of November for Shelby, Inc., determine the taxable earnings for each employee.
Davis, Inc. paid wages to its employees during the year as follows: a. How much of the total payroll is exempt from the FICA rate of 8%? b. How much of the total payroll is exempt from federal and state unemployment taxes? c. How much of the total payroll is exempt from federal income tax withholding?
Payrex Co. has six employees. All are paid on a weekly basis. For the payroll period ending January 7, total employee earnings were 12,500, all of which were subject to SUTA, FUTA, Social Security, and Medicare taxes. The SUTA tax rate in Payrexs state is 5.4%, but Payrex qualifies for a rate of 2.0% because of its good record of providing regular employment to its employees. Other employer payroll taxes are at the rates described in the chapter. REQUIRED 1. Calculate Payrexs FUTA, SUTA, Social Security, and Medicare taxes for the week ended January 7. 2. Prepare the journal entry for Payrexs payroll taxes for the week ended January 7. 3. What amount of payroll taxes did Payrex save because of its good employment record?

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