Question

Green Day Hardware payroll for November 2020 is summarized below.

					Amount Subject to Payroll Taxes
						Unemployment Tax
Payroll		Wages Due		FICA		Federal		State
Factory		$120,000		$120,000		$40,000		$40,000
Sales		32,000		32,000		4,000		4,000
Administrative		36,000		36,000
Total		$188,000		$188,000		$44,000		$44,000

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 $128,400 and 1.45% in excess of $128,400. Of the $188,000 wages subject to FICA tax, $20,000 of the sales wages is in excess of $128,400. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $16,000 for factory, $7,000 for sales, and $6,000 for administrative.

(A ) 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		$		$		$		$

(B) 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.)

Answer 1

1.)		Factory	Sales	Administrative	Total
	Salaries and Wages	120,000	32,000	36,000	188,000
	FICA Taxes	9,180	1,208	2,754	13,142
	FUTA Taxes	320	32	-	352
	SUTA Taxes	1,000	100	-	1,100
	Total Cost	130,500	33,340	38,754	202,594
	Working Note:-
	1- Calculate the FICA, FUTA and SUTA taxes for factory wages as shown below:-
	FICA Taxes= $120,000*7.65%	9,180
	FUTA Taxes = $40,000*0.8%	320
	SUTA Taxes= $40,000*2.5%	1,000
	The total taxes for factory wages are $10,500
	2- Calculate the FICA, FUTA and SUTA taxes for Sales salaries as shown below:-
	FICA Taxes ($32,000-$20,000)*7.65%+($20,000*1.45%)	1,208
	FUTA Taxes ($4,000*0.8%)	32
	SUTA Taxes($4,000*2.5%)	100
	The total taxes for sales salaries are $1,340.
	3- Calculate the FICA, FUTA and SUTA taxes for administrative salaries as shown below:-
	FICA Taxes= $36,000*7.65%= $2,754
	There is no FUTA tax and SUTA tax on administrative salaries. Therefore, the total tax for administrative salaries is $2,502
2.)	Preparing the journal entries as shown below:-
	Account Titles and Explanation	Debit ($)	Credit ($)
	Factory Payroll:
	Wages and Salaries Expenses	120,000
	Withholding taxes payable		16,000
	FICA payable		9,180
	Wages and Salaries payable		94,820
	(To record salaries and wages expenses)
	Payroll Tax Expense	10,500
	FICA Payable		9,180
	FUTA Payable		320
	SUTA Payable		1,000
	(To record the payroll expense)
	Sales Payroll:
	Wages and Salaries Expense	32,000
	Withholding taxes payable		7,000
	FICA Payable		1,208
	Wages and Salaries payable		23,792
	(To record the salaries and wages expenses)
	Payroll Tax Expense	1,340
	FICA Payable		1,208
	FUTA Payable		32
	SUTA Payable		100			ekkarill92 Next > < Previous Related Solutions Pina Hardware Company’s payroll for November 2017 is summarized below. Amount Subject to Payroll Taxes Unemployment... Pina Hardware Company’s payroll for November 2017 is summarized below. Amount Subject to Payroll Taxes Unemployment Tax Payroll Wages Due FICA Federal State Factory $123,500 $123,500 $39,500 $39,500 Sales 30,800 30,800 4,000 4,000 Administrative 36,000 36,000    Total $190,300 $190,300 $43,500 $43,500 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... Stellar Hardware Company’s payroll for November 2017 is summarized below. Amount Subject to Payroll Taxes Unemployment... 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... Exercise 13-7 Pearl Hardware Company’s payroll for November 2017 is summarized below. Amount Subject to Payroll... Exercise 13-7 Pearl Hardware Company’s payroll for November 2017 is summarized below. Amount Subject to Payroll Taxes Unemployment Tax Payroll Wages Due FICA Federal State Factory $122,700 $122,700 $42,200 $42,200 Sales 32,400 32,400 3,700 3,700 Administrative 32,900 32,900    Total $188,000 $188,000 $45,900 $45,900 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... Exercise 13-9 (Part Level Submission) Green Day Hardware Company’s payroll for November 2014 is summarized below.... Exercise 13-9 (Part Level Submission) Green Day Hardware Company’s payroll for November 2014 is summarized below. Amount Subject to Payroll Taxes Unemployment Tax Payroll Wages Due Federal State Factory $148,000 $43,000 $43,000 Sales 36,300 4,700 4,700 Administrative 36,000    Total $220,300 $47,700 $47,700 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... Unemployment benefits are subject to income taxes. They are not (by default) subject to withholding, or... Unemployment benefits are subject to income taxes. They are not (by default) subject to withholding, or to payroll taxes. Suppose that a particular worker is subject to a payroll tax of 7.65% of her wages; that she pays an average income tax rate of 10%; and that after losing her job, she is eligible to receive 60% of her previous weekly income. (Show Work) (a) What fraction of her take-home paycheck will she receive from unemployment insurance? (b) What effect... "Our system of payroll taxes and unemployment benefits spreads the cost of unemployment benefits to the... "Our system of payroll taxes and unemployment benefits spreads the cost of unemployment benefits to the entire population. However, it does not fully eliminate all the costs of unemployment." Are these two statements true or false? Why? Which of the following statements about payroll taxes is true? A : Federal and state unemployment... Which of the following statements about payroll taxes is true? A : Federal and state unemployment taxes are paid by employers to the taxing authority and are recorded as salaries and wages expense. B : Federal and state unemployment taxes are paid by employers to the taxing authority and are recorded as payroll tax expenses. C : Federal and state unemployment taxes are paid by employers to employees at the time they leave the company and are recorded as salaries... Bulldog accrues salaries and payroll taxes on the last day of each month and pays all... Bulldog accrues salaries and payroll taxes on the last day of each month and pays all employment-related liabilities on the 5th day of the following month. Assume employees are in the 10% income tax bracket. Use the following tax rates: FICA OASDI, 6.2%; Medicare, 1.45%; Federal Unemployment Tax, 0.6%; and State Unemployment Tax, 5.4%. 2. Prepare and print the following financial statements: multi-step income statement for the month ended January 31, statement of retained earnings for the month ended January... Which payroll taxes are both the employer and employee responsible for paying generally an equal amount?... Which payroll taxes are both the employer and employee responsible for paying generally an equal amount? Please explain. Widmer Company had gross wages of $320,000 during the week ended June 17. The amount of wages subject to social security tax was $320,000, while the amount of wages subject to federal and state unemployment taxes was $48,000. Tax rates are as follows: Payroll Entries Widmer Company had gross wages of $320,000 during the week ended June 17. The amount of wages subject to social security tax was $320,000, while the amount of wages subject to federal and state unemployment taxes was $48,000. Tax rates are as follows: Social security 6.0%  Medicare 1.5% 5.4%  State unemployment Federal unemployment 0.8% The total amount withheld from employee wages for federal taxes was $64,000. If an amount box does not require an entry, leave it blank. a. Journalize the entry to record... ADVERTISEMENT Subjects Accounting Advanced Math Anatomy and Physiology Biology Chemistry Civil Engineering Computer Science Economics Electrical Engineering Finance History Math Mechanical Engineering Operations Management Physics Psychology Statistics and Probability Nursing Other ADVERTISEMENT Latest Questions What are the two reasons that limit the ability of correlational studies to provide information on... Suppose that 20 monthly payments of $100 each are followed by 30 monthly payments of $200... D. Explain what it means for recommendations to be specific and actionable. E. Discuss how charts... Capital Toys’ management is considering eliminating product A, which has been showing a loss for several... Computer Networks IT 210 Please Use your own words . sorry No handwriting no copy paste... The Coronavirus will obviously impact the economy of big organizations like FIFA or the NBA but... Question: what is the difference between rights of assertion and observation assertion. Include which financial statements... ADVERTISEMENT About @ 2020 WizEdu