Question

use execl and show me how

The following is a payroll sheet for Otis Import Company for the month of September 2017. Selected information follows.                                                                                                                               

nemployment compensation rate allowed by the state   1.00%,Unemployment compensation rate for the federal government 0.80%,Maximum wages for unemployment for federal and state governments$7,000 Federal income tax rate for all employees 10%,FICA tax on employee and employer7.65Maximum wages for FICA tax $118,500 Employer and employee rate for an employee’s excess wages 1.45%,Maximum wages per employee to avoid the excess wages charge $118,500

          

Name		Earnings to Aug 31	Sept Earnings	Income Tax Withholding	F.I.C.A.	State U.C.	Federal U.C.
B.D. Williams		$                   6,800	$                800
D. Raye		6,500	700
K. Baker		7,600	1,100
F. Lopez		13,600	1,900
A. Daniels		107,000	13,000
B. Kingston		112,000	16,000

                                                                                                             

  

(a)          Complete the payroll sheet and make the necessary entry to record the payment of the payroll.                                                                                                 

(b)          Make the entry to record the payroll tax expenses of Otis Import Company.                                         

(c)           Make the entry to record the payment of the payroll liabilities created. Assume that the company pays all payroll liabilities at the end of each month.                                                                                                         

                                                                                                                               

                                                                                                                               

                                                                                                                               

                                                                                               

Answer 1

Ans-

Name	Earnings to August 31	Sept. Earnings	Income Tax Withholding Sept. Earnings *10%	FICA Sept. Earnings *7.65%	State U.C.	Federal U.C.
B.D.Williams	$6,800	800	80	61.2	2	1.6
D.Raye	6,500	700	70	53.55	5	4
K.Baker	7,600	1,100	110	84.15
F.Lopez	13,600	1,900	190	145.35
A.Daniels	107,000	13,000	1,300	188.5
B.Kingston	112,000	16,000	1,600	232
Total		$33,500	$3,350	$764.75	$7	$5.6

Working Note:

	FICA
A. Daniels	$13,000*1.45%	$188.5
B. Kingston	$16,000*1.45%	$232

	State U.C.
B.D.Williams	($7,000-$6,800)*1%	$2
D.Raye	($7,000-$6,500)*1%	$5

	Federal U.C.
B.D. Williams	($7,000-$6,800)*0.8%	$1.6
D. Raye	($7,000-$6,500)0.8%	$4

Journal Entries

Date	Account Title and Explanation	Debit ($)	Credit ($)
Sep.2017 (a)	Wages & Salaries Expenses	33,500
	Withholding Taxes Payable		3,350
	FICA Taxes Payable		764.75
	Cash (Bal. fig)		29,385.35
(b)	Payroll tax expenses	777.35
	FICA Taxes Payable		764.75
	State Unemployment taxes payable		7
	Federal Unemployment taxes payable		5.6
(c)	Withholding Taxes payable	3,350
	FICA Taxes payable	1,529.5
	State Unemployment taxes payable	7
	Federal Unemployment taxes payable	5.6
	Cash		4,892.1