Question

PROBLEM IY: PREPARING THE PAYR Using the information below, determine the pay the prepare the payrollator for Brooks Com ARING THE "PAYROLL ENTRY CLO POINTS Assume the following ne the payroll uks Company for the current payroll period calentay ding November 1 Federal Income Tax is 20% of gross pay 12) State Income Tax is 5% of gross pay 13] FICA Tax Sosial Secu CA Tax - Social Security Tax is 62 WageCap-5122,700. FICA Tax - Medicare 14 NO WAGE CAP P Each cmployee contributes $20 per day period for union dues C ute Grosse (Harings) Prior Employee Current Period S S 122,000 110,000 Current Period Gross Pay $ 1,000 S 900 Part 1: Calculate the payroll de ductions withholdings GROSS PAY (CURRENT PAY PERIOD): (1) Calculate Federal Income Tax (2) Calculate State Income Tax = (3) Calculate FICA-Social Security (4) Calculate FICA-Medicare (5) Calculate Union Dues = NET PAY (CURRENT PAY PERIOD): Part 2: Record the Payroll Entry - Journal Entry to Record Payroll Expense of the Employer GENERAL JOURNAL DATE ACCOUNT NAME & DESCRIPTION DEBIT CREDIT To record payroll for the pay period ending 11/30/xx Page 5

Answer 1

	A	B	Total
GROSS PAY	1000	900	1900
(1) Calculate federal Income tax	200	180	380
(2) Calculate state income tax	50	45	95
(3) Calculate FICA Social Security	62	55.8	117.8
(4) Calculate FICA Medicare	14.5	13.05	27.55
(5) Calculate Union Dues	20	20	40
Net Pay (Current Period)	653.5	586.15	1239.65

Date	Account Name & Description	Debit	Credit
Nov 30	Salaries and wages Expense	1900
	Federal income taxes payable		380
	State income taxes payable		95
	FICA Social security tax payable		117.8
	FICA Medicare tax payable		27.55
	Union dues payable		40
	Salaries and wages payable		1239.65