Question
In: Accounting
Recording Payroll Taxes According to a summary of the payroll of Kirby Co., $180,000 in earnings...
Recording Payroll Taxes
According to a summary of the payroll of Kirby Co., $180,000
in earnings were subject to the 7.5% FICA tax. Also, $60,000 in
earnings were subject to state and federal unemployment
taxes.
a. Calculate the employer's payroll taxes, using the following
rates: state unemployment, 4.3%; federal unemployment, 0.8%.
$
b. Illustrate the effects on the accounts and financial
statements of recording the accrual of payroll taxes. If no account
or activity is affected, select "No effect" from the dropdown list
and leave the corresponding number entry box blank. Enter account
decreases and cash outflows as negative amounts.
Statement of Cash Flows
Balance Sheet
Income Statement
Assets
=
Liabilities
+
Stockholders' Equity
No effect
+
No effect
=
FICA tax payable
+
SUTA payable
+
FUTA payable
+
Retained earnings
Statement of Cash Flows
Income Statement
No effect
Payroll tax expense
Solutions
Expert Solution
a)
| Earnings were subject Unemployment Tax | 60,000 |
| Earnings were subject to FICA Tax | 180,000 |
| FICA Tax (180000*7.5%) | 13,500 |
| SUTA Tax (60000*4.3%) | 2,580 |
| FUTA Tax((60000*0.8%) | 480 |
| Assets | No Effect | |
| Liabilities: | ||
| FUTA Payable | Increase | 480 |
| SUTA Pyable | Increase | 2,580 |
| FICA Payable | Increase | 13,500 |
| Stock Holder's Equity | No Effect | |
| Statement of cash flow Statement | No Effect | |
| Income Statement | Increase | 16,560 |
Please note that the Equation Format given in the question is not clear. So I have mentioned Item wise the Effect in above table. You can take the values from the table and fill your assignment.
Dear Student,
Best effort has been made to give quality and correct answer. But if you find any issues please comment your concern. I will definitely resolve your query.
Also please give your positive rating.
ekkarill92 answered 1 year agoRelated Solutions
Recording Payroll Taxes According to a summary of the payroll of Kirby Co., $180,000 in earnings...
Recording Payroll Taxes
According to a summary of the payroll of Kirby Co., $180,000
in earnings were subject to the 7.5% FICA tax. Also, $60,000 in
earnings were subject to state and federal unemployment
taxes.
a. Calculate the employer's payroll taxes, using the following
rates: state unemployment, 4.3%; federal unemployment, 0.8%.
$
b. Illustrate the effects on the accounts and financial
statements of recording the accrual of payroll taxes. If no account
or activity is affected, select "No effect" from...
Payroll Tax Entries According to a summary of the payroll of Guthrie Co., $496,000 was subject...
Payroll Tax Entries
According to a summary of the payroll of Guthrie Co., $496,000
was subject to the 6.0% social security tax and $610,000 was
subject to the 1.5% Medicare tax. Also, $16,000 was subject to
state and federal unemployment taxes.
a. Calculate the employer's payroll taxes,
using the following rates: state unemployment, 4.2%; federal
unemployment, 0.6%.
$
b. Journalize the entry to record the accrual
of payroll taxes. If an amount box does not require an entry, leave
it...
According to a summary of the payroll of Mountain Streaming Co., $643,000 was subject to the...
According to a summary of the payroll of Mountain Streaming Co.,
$643,000 was subject to the 6.0% social security tax and the 1.5%
Medicare tax. Also, $21,000 was subject to state and federal
unemployment taxes.
a. Calculate the employer's payroll taxes,
using the following rates: state unemployment, 4.2%; federal
unemployment, 0.8%.
$fill in the blank 262f0002cffe034_1
b. Journalize the entry to record the accrual
of payroll taxes. If an amount box does not require an entry, leave
it blank.
fill...
According to a summary of the payroll of Guthrie Co., $600,000 was subject to the 6.0%...
According to a summary of the payroll of Guthrie Co., $600,000
was subject to the 6.0% social security tax and the 1.5% Medicare
tax. Also, $56,000 was subject to state and federal unemployment
taxes.
Required:
a.
Compute the employer’s payroll taxes, using the following
rates: state unemployment, 5.4%; federal unemployment, 0.6%.
b.
On December 31, journalize the entry to record the accrual of
payroll taxes. Refer to the chart of accounts for the exact wording
of the account titles. CNOW...
According to a summary of the payroll of Guthrie Co., $720,000 was subject to the 6.0%...
According to a summary of the payroll of Guthrie Co., $720,000
was subject to the 6.0% social security tax and the 1.5% Medicare
tax. Also, $60,000 was subject to state and federal unemployment
taxes.
Required:
A.
Calculate the employer’s
payroll taxes, using the following rates: state unemployment, 5.4%;
federal unemployment, 0.6%.
B.
On December 31, journalize the
entry to record the accrual of payroll taxes. Refer to the Chart of
Accounts for exact wording of account titles.
Recording Payroll and Payroll Taxes Ruth Corporation had the following payroll for April: Officers’ salaries $36,000...
Recording Payroll and Payroll Taxes
Ruth Corporation had the following payroll for April:
Officers’ salaries
$36,000
Sales salaries
67,000
Federal income taxes withheld
19,000
FICA taxes withheld
7,500
Health insurance premiums withheld
1,800
Union dues withheld
1,400
Salaries (included above) subject to federal unemployment
taxes
55,000
Salaries (included above) subject to state unemployment
taxes
58,000
Required
Prepare journal entries on April 30 to record:
a. Accrual of the monthly payroll.
b. Payment of the net payroll.
c. Accrual of employer’s...
According to a summary of the payroll of Mountain Streaming Co., $110,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax.
Payroll Tax Entries According to a summary of the payroll of Mountain Streaming Co., $110,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $25,000 was subject to state and federal unemployment taxes. a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%. b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank.
2. SHOW ALL WORK According to a summary of the payroll of Scotland Company, salaries for...
2. SHOW ALL WORK According to a summary of the payroll of
Scotland Company, salaries for the period were $500,000. Federal
income tax withheld was $98,000. Also, $15,000 was subject to state
(5.4%) and federal (0.8%) unemployment taxes. All earnings are
subject to social security tax of 6.0% and Medicare tax of
1.5%.
(a) Journalize the entry to record the accrual of payroll. If
required, round your answers to the nearest cent.
(b) Journalize the entry to record the accrual...
Calculation of Taxable Earnings and Employer Payroll Taxes and Preparation of Journal Entry Selected information from...
Calculation of Taxable Earnings and Employer Payroll Taxes and
Preparation of Journal Entry
Selected information from the payroll register of Joanie's
Boutique for the week ended September 14, 20--, is as follows:
Social Security tax is 6.2% on the first $128,400 of earnings for
each employee. Medicare tax is 1.45% of gross earnings. FUTA tax is
0.6% and SUTA tax is 5.4% on the first $7,000 of earnings.
Taxable Earnings
Employee Name
Cumulative Pay
Before Current
Earnings
Current
Gross Pay...
CALCULATION OF TAXABLE EARNINGS AND EMPLOYER PAYROLL TAXES AND PREPARATION OF JOURNAL ENTRIES: Selected information from...
CALCULATION OF TAXABLE EARNINGS AND EMPLOYER PAYROLL
TAXES AND PREPARATION OF JOURNAL ENTRIES: Selected information from
the payroll register of Joanie’s boutique for the week ended
September 14, 2013 is as follows. Social Security tax is 6.2% on
the first $110,100 of earnings for each employee. Medicare tax is
1.45% of gross earnings. FUTA tax is 0.8% and SUTA tax is 3.2% on
the first $7,000 of earnings for each employee.
Taxable Earnings
Cumulative Pay
Before Current...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- More and more adults are considering commuting to work by bicycle rather than car, but few...
- Please answer these questions Data Processing and Analysis using python. Thank you In statistics, an outlier...
- Write a function file that accepts each of the four vectors as inputs. The function file...
- Kant says that to act morally is to act out of duty. How does this differ...
- Suppose you are trying to determine the capacity (in gallons) of the gas tank needed on...
- List the arithmetic operators used in BASIC and state their priorities of execution in a statement....
- Describe the espoused values of a company you have worked for (or been exposed to -...
ADVERTISEMENT