Question

EI1.11 (LO 3) Ramirez Company has the following data for the weekly payroll ending January 31. Federal Income Tax Withholding $34 37 58 Health Insurance $10 25 25 Hours Hourly Employee L. Helton R. Kenseth 8 8 8 8 8 2 D. Tavaras 9 10 8 8 9 0 M T W TF S Rate 8 8 9 8 10 3 $12 14 15 Employees are paid 112 times the regular hourly rate for all hours worked in excess of 40 hours per week. FICA taxes are 7.65% on the first $127,200 of gross earnings. Ramirez Company is subject to 5.4% state unemployment taxes and 0.8% federal unemployment taxes on the first $7,000 of gross earnings. Instructions a. Prepare the payroll register for the weekly payrol. b. Prepare the journal entries to record the payroll and Ramirez's payroll tax expense.

Answer 1

Earnings Overtime Deduction Total Hours Gross FICA Taxes Federal Income Tax Health Insurance Total $10 $499 L. Helton R. Kenseth D. Tavaras Total $480 $560 $108 $42 $588 $89 $108 $42 537 $53 $144 $554 1,547 $132 $129 $333 1,640 1,880 Total Hours Calculation L. Helton R. Kenseth D. Tavaras 8+819+8+10+3 8+8+8+8+8+2 9+10+8+8+9+0 Solution 2 Journal Entries Salaries and Wages A/C Dr $1,880 January 31st To FICA Taxes Payable A/c To Federal Income Taxes Payable A/C To Health Insurance Payable A/C To Salaries and Wagares Payable A/C $129 $1,547 To Record Payroll) Payroll Taxes A/C Dr $1,606 January 31st To FUTA A/C To SUTA A/C $1,504 0.80 x $1,880 Federal Unemployement Taxes $102 5.4% on $ 1,880 state unemployement Taxes To Record Payroll Taxes)