Problem 134 Below is a payroll sheet for Bonita Import Compa

Problem 13-4 Below is a payroll sheet for Bonita Import Company for the month of September 2017. The company is maxrmum of S 1 18,500. allowed a 1% u t tax rate is 0.8% and the maximum for both is $7,000. Assume A in addition, I ,45% is charged both employer and employee for an employee\'s wages in excess of rna a 10% fader al incorna tax rate for all employees and a 7,65% F?CA tax on employee and employer % Complete the payroll sheet.(Round answers to 2 decimal places, e.g. 15.26.) Unem Tax Withholding Name B. D. Williams D. Raye K. Baker F. Lopez to Aug. 31 $6,800 6,500 7,700 14,700 108,300 113,000 Earnin FICA $900 800 2,000 12,200 B. Kingston Total Make the necessary entry to record the payment of the payroll. (If no entry is required, select \"No Entry\" for the account titles and enter o for the amounts. Credi account titles are automatically indented when amount is entered. Do not indent manually.)

Solution

Unemployment Tax Name Earnings to Aug-31 September earnings Adjusted earnings Income Tax withholding(10%* september earnings) FICA(September earnings*7.65%) State(1%) Federal(0.80%) B.D. Williams 6800 900 7700 90                      68.85 2 1.6 Max 7000 D. Rayne 6500 800 7300 80                      61.20 5 4 K.Baker 7700 1200 8900 120                      91.80 0 0 F.Lopez 14700 2000 16700 200                   153.00 0 0 A. Daniets 108300 12000 120300 1200                   198.00 0 0 B. Kingston 113000 16000 129000 1600                   264.00 0 0 Total 257000 32900 3290 836.85 7 5.6 State Tax (7000-6800)*1% (7000-6800)*0.80% 2 1.6 (7000-6500)*1% (7000-6500)*0.80% 5 4 Journal Entry Entry for making payment of Payroll Wages and Salaries Expense 32900 To Withholding taxes payable 3290 To FICA Taxes payable 836.85 To Cash 28773.15 Entry to record the payroll tax expenses Payroll Tax Expense 849.45 To FICA Taxes payable                                  836.85 To Federal Unemployment Tax Payable                                       5.60 To State Unemployment Tax Payable                                       7.00 Payment of Payroll liabilities created 31-Dec Withholding Taxes payable 3290 FICA Taxes payable 1673.7 Federal Unemployment Tax Payable 5.6 State Unemployment Tax Payable 7 To Cash 4976.3