Question

Problem 13-4 Below is a payroll sheet for Wildhorse Import Company for the month of September 2017. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% FICA tax on employee and employer on a maximum of $118,500. In addition, 1.45% is charged both employer and employee for an employee’s wages in excess of $118,500 per employee. Complete the payroll sheet. (Round answers to 2 decimal places, e.g. 15.26.) Unemployment Tax Name Earnings to Aug. 31 September Earnings Income Tax Withholding FICA State Federal B. D. Williams $6,900 $700 $ $ $ $ D. Raye 6,700 600 K. Baker 7,500 1,200 F. Lopez 13,800 2,000 A. Daniels 106,200 12,500 B. Kingston 110,800 16,500 Total $ $ $ $ $ $ Make the necessary entry to record the payment of the payroll. (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 amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Make the entry to record the payroll tax expenses of Wildhorse Import Company. (Round answers to 2 decimal places, e.g. 15.25. 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 amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit 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. (Round answers to 2 decimal places, e.g. 15.25. 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 amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit

Answer 1

Hi

Let me know in case any issue and query:

In schedule, FICA amount can be reported as combined contribution from employer and employee as per question requirement, Generally only employee portion is reported: