Question

Ivanhoe Hardware payroll for November 2020 is summarized below. a Any Search IFS Online Accoun. O Other B Amount Subject to Payroll Тахes Unemployment Tax Payroll Wages Due FICA Federal State Factory $122,600 $122,600 $41,300 $41,300 Sales 33,800 33,800 4,200 4,200 Administrative 39,100 39,100 Total $195,500 $195,500 $45,500 $45,500 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 $128,400 and 1.45% in excess of $128,400. Of the $195,500 wages subject to FICA tax, $20,300 of the sales wages is in excess of $128,400. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $17,300 for factory, $6,700 for sales, and $5,800 for administrative. Prepare a schedule showing the employer's total cost of wages for November by function. (Round answers to O decimal places, eg. 5,275) Factory Sales Administrative Total Salaries and Wages $ %24 122,600 33,800 %24 39,100 195,500 FICA Taxes 9,379 FUTA Taxes SUTA Taxes %24 Total Cost %$. eTextbook and Media

Answer 1

Ivanhoe Hardware Factory Sales Administrative Total Salaries and Wages 33800 122600 39100 195500 9379 FICA Taxes 1327 2991 13697 FUTA Taxes 330 34 364 SUTA Taxes 1033 105 1138 Total Costs 133342 35266 42091 210699 Account Titles and Explanation Factory Payroll: Salaries and Wages Expense Withholding Taxes Payable FICA Taxes Payable Debit Credit 122600 17300 9379 Cash 95921 (To record salaries and wages expense.) Payroll Tax Expense FICA Taxes Payable FUTA Taxes Payable SUTA Taxes Payable (To record payroll tax expense.) Sales Payroll: Salaries and Wages Expense Withholding Taxes Payable FICA Taxes Payable 10742 9379 330 1033 33800 6700 1327 Cash 25773 (To record salaries and wages expense.) Payroll Tax Expense 1466 FICA Taxes Payable 1327 FUTA Taxes Payable SUTA Taxes Payable (To record payroll tax expense.) Administrative Payroll: Salaries and Wages Expense Withholding Taxes Payable FICA Taxes Payable 34 105 39100 5800 2991 Cash 30309 (To record salaries and wages expense.) Payroll Tax Expense FICA Taxes Payable (To record payroll tax expense.) 2991 2991

Ivanhoe Hardware Total Factory Sales Administrative Salaries and Wages 39100 =SUM(B3:D3) 3 122600 33800 4 FICA Taxes =ROUND(122600*7.65 =ROUND(20300*1.45% =ROUND(39100*7.65%,0) =ROUND(41300*0.8%, =ROUND(4200*0.8%,00 =ROUND(41300*2.5%, =ROUND(4200*2.5%,00 =SUM(B3:B6) =SUM(B4:D4) =SUM(B5:D5) =SUM(B6:D6) 5 FUTA Taxes 6 SUTA Taxes 7 Total Costs =SUM(C3:C6) =SUM(D3:D6) =SUM(E3:E6) 8. 9. 10 Account Titles and Explanation 11 Factory Payroll: 12 Salaries and Wages Expense 13 Withholding Taxes Payable 14 FICA Taxes Payable Debit Credit 3DВЗ 17300 =B4 15 Cash =B12-C13-C14 16 (To record salaries and wages expense.) 17 Payroll Tax Expense =SUM(C18:C20) 18 FICA Taxes Payable 19 FUTA Taxes Payable 20 SUTA Taxes Payable =B4 =B5 =B6 (To record payroll tax expense.) 21 22 Sales Payroll: Salaries and Wages Expense Withholding Taxes Payable FICA Taxes Payable 23 24 6700 25 =C4 26 Cash =B23-C24-C25 27 (To record salaries and wages expense.] 28 Payroll Tax Expense 29 FICA Taxes Payable 30 FUTA Taxes Payable 31 SUTA Taxes Payable 32 (Torecord payroll tax expense.) 33 Administrative Payroll: 34 Salaries and Wages Expense 35 Withholding Taxes Payable 36 FICA Taxes Payable =C29+C30+C31 =C5 =C6 =03 5800 =D4 37 Cash =B34-C35-C36 38 (Torecord salaries and wages expense.) 39 Payroll Tax Expense 40 FICA Taxes Payable 41 (Torecord payroll tax expense.) =C40 =D4 |ш