Question

Stellar Hardware Company’s payroll for November 2017 is summarized below. Amount Subject to Payroll Taxes Unemployment Tax Payroll Wages Due FICA Federal State Factory $129,000 $129,000 $40,800 $40,800 Sales 33,200 33,200 3,900 3,900 Administrative 39,300 39,300 Total $201,500 $201,500 $44,700 $44,700 At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee’s wages to $118,500 and 1.45% in excess of $118,500. Of the $201,500 wages subject to FICA tax, $21,900 of the sales wages is in excess of $118,500. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $14,700 for factory, $6,900 for sales, and $5,900 for administrative. Prepare a schedule showing the employer’s total cost of wages for November by function. (Round answers to 0 decimal places, e.g. 5,275.) Factory Sales Administrative Total Salaries and Wages $ $ $ $ FICA Taxes FUTA Taxes SUTA Taxes Total Cost $ $ $ $ SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer’s payroll taxes. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,125.) Account Titles and Explanation Debit Credit Factory Payroll: (To record salaries and wages expense.) (To record payroll tax expense.) Sales Payroll: (To record salaries and wages expense.) (To record payroll tax expense.) Administrative Payroll: (To record salaries and wages expense.) (To record payroll tax expense.)

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