httpsedugenwileypluscomedugenstudentmainfruni ice Assignment

https://edugen.wileyplus.com/edugen/student/mainfr.uni ice Assignment Gradebook ORION Downloadable eTextbook ment CALCULATOR MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION ·BACK NEXT Problem 13-3 Cedarville Company pays its office employee payroll weekly. Below is a partial list of employees and their payroll data for August. Because August is their vacation period, vacation pay is also listed. Vacation Pay to Be Earnings to Weekly Received in Employee uly 31 $4,200 3,500 2,700 7,400 8,000 Pay $200 150 August Mark Hamill Karen Robbins Brent Kirk Alec Guinness Ken Sprouse $300 220 250 330 660 Assume that the federal income tax withheld is 10% of wages. Union dues withheld are 2% of wages. Vacations are taken the second and third weeks of August by Robbins, Kirk, and Sprouse. The state unemployment tax rate is 2.5% and the federal is 0.8%, both on a $7,000 maximum. The FICA rate is 7.65% on employee and employer on a maxim mo $118,500 per employee. In addition, a 1.45% rate is charged both employer and employee for an employee\'s wages in excess of $118,500. Make the journal entries necessary for each of the four August payrolls. The entries for the payroll and for the company\'s liability are made separately. Also make the entry to record the monthly payment of accrued payroll liabilities. (Round answers to 2 de If no entry is required, select \"No Entry\" for the account titles and enter O for the amounts. indented when amount is entered. Do not indent manually.) eg. ,sas. oedit account es ore aulomatiaey Account Titles and Explanation Debit Credit 8 John Wiley & Sons,Inc, All Rights Reserved. A Division of John Wiley & Sons, Ins Version 4.24,45

Solution

Entries for Payroll 1

Salaries and Wages Expense....................................

1,040.00*

          Withholding Taxes Payable (10% X $1,040)*.

104.00

          FICA Taxes Payable (7.65% X $1,040)............

79.56

          Union Dues Payable (2% X $1,040).................

20.80

          Cash......................................................................

835.64

*$200 + $150 + $110 + $250 + $330 = $1,040

Payroll Tax Expense....................................................

94.74

          FICA Taxes Payable (7.65% X $1,040)............

79.56

          FUTA Taxes Payable

             [0.8% X ($200 + $150 + $110)]........................

3.68

          SUTA Taxes Payable (2.5% X $460)................

11.50

Entries for Payroll 2 and 3

Salaries and Wages Payable (Vacation)..................

590.00*

Salaries and Wages Expense....................................

450.00

          Withholding Taxes Payable (10% X $1,040)..

104.00

          FICA Taxes Payable (7.65% X $1,040)............

79.56

          Union Dues Payable (2% X $1,040).................

20.80

          Cash......................................................................

835.64

*($300 + $220 + $660) ÷ 2

Payroll Tax Expense....................................................

94.74

          FICA Taxes Payable (7.65% X $1,040)............

79.56

          FUTA Taxes Payable (0.8% X $460)................

3.68

          SUTA Taxes Payable (2.5% X $460)................

11.50

Entries for Payroll 4

Salaries and Wages Expense....................................

1,040.00

          Withholding Taxes Payable (10% X $1,040)..

104.00

          FICA Taxes Payable (7.65% X $1,040)............

79.56

          Union Dues Payable (2% X $1,040).................

20.80

          Cash......................................................................

835.64

Payroll Tax Expense....................................................

94.74

          FICA Taxes Payable (7.65% X $1,040)............

79.56

          FUTA Taxes Payable (0.8% X $460)................

3.68

          SUTA Taxes Payable (2.5% X $460)................

11.50

Monthly Payment of Payroll Liabilities

Withholding Taxes Payable ($104.00 X 4)...............

416.00

FICA Taxes Payable ($79.56 X 8)..............................

636.48

Union Dues Payable ($20.80 X 4)..............................

83.20

FUTA Taxes Payable ($3.68 X 4)...............................

14.72

SUTA Taxes Payable ($11.50 X 4).............................

46.00

          Cash......................................................................

1,196.40

Entries for Payroll 1
Salaries and Wages Expense....................................	1,040.00*
Withholding Taxes Payable (10% X $1,040)*.		104.00
FICA Taxes Payable (7.65% X $1,040)............		79.56
Union Dues Payable (2% X $1,040).................		20.80
Cash......................................................................		835.64
*$200 + $150 + $110 + $250 + $330 = $1,040
Payroll Tax Expense....................................................	94.74
FICA Taxes Payable (7.65% X $1,040)............		79.56
FUTA Taxes Payable
[0.8% X ($200 + $150 + $110)]........................		3.68
SUTA Taxes Payable (2.5% X $460)................		11.50