a)
Total | Factory | Sales | Administrative | |
Wages | $188,000 | $120,000 | $32,000 | $36,000 |
FICA | $13,142 | $9,180 | $1,208 | $2,754 |
Federal UC | $352 | $320 | $32 | |
State UC | $1,100 | $1,000 | $100 | |
Total | $202,594 | $130,500 | $33,340 | $38,754 |
Working as follows:
Factory | Sales | Administrative | |
Wages | $120,000 | $32,000 | $36,000 |
FICA | ($120,000 × 7.65%) | [($32000-$20000) × 7.65%) + ($20000 × 1.45%)] | ($36,000 × 7.65%) |
Federal UC | $40000 × 0.8% | $4000 × 0.8% | |
State UC | $40000 × 2.5% | $4000 × 2.5% |
______________________________________________________________________
b)
Prepare journal entries as follows:
Account Titles | Debit | Credit |
Factory payroll | ||
Wages & Salary | $120,000 | |
Withholding tax payable | $16,000 | |
FICA tax payable | $9,180 | |
Cash | $94,820 | |
Payroll tax expense | $10,500 | |
FICA tax payable | $9,180 | |
State UC | $1,000 | |
Federal UC | $320 | |
Sales Payroll | ||
Wages & Salary | $32,000 | |
Withholding tax payable | $7,000 | |
FICA tax payable | $1,208 | |
Cash | $23,792 | |
Payroll tax expense | $1,340 | |
FICA tax payable | $1,208 | |
State UC | $100 | |
Federal UC | $32 | |
Administrative payroll | ||
Wages & Salary | $36,000 | |
Withholding tax payable | $6,000 | |
FICA tax payable | $2,754 | |
Cash | $27,246 | |
Payroll tax expense | $2,754 | |
FICA tax payable | $2,754 |
E13.7 (LO 1) (Payroll Tax Entries) Green Day Hardware's payroll for Nov lax Entries) Green Day...
E13-7 (L01) (Payroll Tax Entries) Green Day Hardware Company's payroll for November 2017 is summarized below Amount Subject to Payroll Taxes Unemployment Tax Wages Due $120,000 32,000 36,000 $188,000 FICA Federal $40,000 4,000 State Factory Sales Administrative $120,000 32,000 36,000 $188,000 $40,000 4,000 Total $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 taxis 2.5%. The FICA rate is 7.65% on...
Can you help me with (b) E13-7 (L01) (Payroll Tax Entries) Green Day Hardware Company's payroll for November 2017 is summarized below. Payroll Factory Sales Administrative Total Wages Due $120,000 32,000 36,000 $188,000 Amount Subject to Payroll Taxes Unemployment Tax FICA Federal State $120,000 $40,000 $40,000 32,000 4,000 36,000 $188,000 $44,000 $44,000 4,000 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...
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Amount Subject to Payroll Taxes Unemployment Tax Payroll Wages Due FICA Federal State Factory $122,200 $122,200 $36,200 $36,200 Sales 33,500 33,500 3,900 3,900 Administrative 35,500 35,500 xxxx xxxx Total $191,200 $191,200 $40,100 $40,100 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 $118,500 and 1.45% in excess of $118,500. Of...
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