Question

Please help me....pleae read the whole information!

You've just started your first accounting job, as the accounts payable and payroll clerk for Copperfield and Company, a provider of delicate wine glasses to restaurants. Your predecessor left the job suddenly, and was not able to complete all the tasks before leaving. You need to get up to speed and complete the unfinished tasks as soon as possible. Your tasks on your first day are the following: 1. Review the Payroll Journal entries made by your predecessor. 2. Compute the relevant amounts for the company's short-term note payable and determine whether your predecessor's journal entries are correct. 3. Confirm the journal entry for this year's payment on an installment note. 4. Make a recommendation as to whether the company should journalize any warranty expense for the month. You decide to get started the sooner the better! CHART OF ACCOUNTS Copperfield and Company General Ledger ASSETS 110 Cash 112 Accounts Receivable 113 Interest Receivable 114 Notes Receivable 115 Inventory 117 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Sales Salaries Expense 521 Factory Wages Expense 522 Officers Salaries Expense 523 Delivery Expense 524 Depreciation Expense-Building 526 Repairs Expense 529 Selling Expenses 530 Office Salaries Expense

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Answer 1

1) $ 21,500

Salary subject to Unemployment Federal Tax

= Unemployment Federal Tax / Tax Rate = $ 172 / 0.8% = $ 21,500

2) $ 698,833

Total Payroll = Payroll Expense + Payroll Tax Expenses + Pension Expense = $ 620,000 + $ 47,833 + $ 31,000 = $ 698,833

3) $ 46,500

FICA's Employer Contribution = $ 37,200 + $ 9,300 = $ 46,500

4) $ 0

Company 's contribution to 401(k) plan = $ 0

Employee's Contribution to 401(k) = $ 93,000