I will update my pictures and my question need help with the

I will update my pictures and my question need help with the worksheets for my accounting principles class complete the budget for expenses and the payroll worksheet.

Just in case the images were hard to see. need help completing these for my class.

C27 1 Student Name: 3 Expenses Monthly Amount One-Time fee* S Advertising 6 Licenses 50.00 100.00 200.00 400.00 Office Supplies 8 Professional Fees 9 Rent Expense 10 11 T 12 Website Expenses 13 Total Expenses 14 15 16 The One-Time fees will be due in July. 17 8 Part-time Employee information: 19 You have placed an ad for part-time help for 15 hours per week at $14/hour 20 You found a potential employee and their effective date to start would be July 1st. S00.00 Expense 91.96 100.00 150.00 891.96 $ Expense 700.00 Information Budget for Expenses Payroil Worksheet Ready our budgeting technique to plan ahead for the amount requested, inci n which you will need the additional funds. Reference the inclusion of t mortization table and discuss your understanding of liabilities such as the debt-equity ratio covered in Ch 14. Be sure to follow APA forma

Solution

Answer :

Payroll Worksheet

Let us assume we have 4 weeks in a month

Then Gross pay for July month = 4 weeks X 15 hours per week x $ 14 per hour

= $ 840 per month.

FICA-Social Security :Employee portion 6.2 %  of earnings AND Employer portion = 6.2%

= $ 840 X 6.2%

= $ 52.08 each from employer and employee

FICA-Medicare :Employee portion 1.45 %  of earnings AND Employer portion =1.45%

= $ 840 X 1.45%

= $ 12.18  each from employer and employee

State Unemployment tax rate is deducted on First $ 7000 of annual pay , on excess pay of $ 7000 we need not deduct state unemployment rate. It is not deducted from employees pay . It should be separetely borne by employer.

= $ 840 X 5.4%

= $ 45.36

Federal unemployment rate = 0.6% on Gross pay

= $ 840 X 0.6%

= $ 5.04

Federal income tax withholding is 12% =12% on { Gross pay - deductions }

= {$ 840 - [ $ 52.08 + $12.18 ] } X 12%

= $ 775.74 X 12%

= $ 93.088

MONTHLY NET PAY :

a)Gross pay = $ 840

b) Employee FICA-Social Security= $ 52.08

c) Employee FICA - Medicare = $ 12.18

d) Federal income tax withholding tax = $ 93.088

e) NET PAY [ e = a - (b-c-d) ]

NET PAY = $ 840 - [ $ 52.08 + $ 12.18 +$ 93.088 ]

= $ 840 - $ 157.348

= $ 682.652

JOURNAL ENTRIES FOR PAYROLL :

1) Journal entry for July s payroll ( Employee entry )

31/07/2018 Salary a/c DR $ 840

To FICA Social Security Payable a/c $ 52.08

To FICA Medicare payable a/c $ 12.18

To withholding tax payable a/c $ 93.088

To Salary payable a/c $ 682.652.

( Being entry for Salary payable and employee deductions accounted in books)

2) Journal entry for Employer payroll taxes

31/07/2018 Employer FICA Social Security a/c Dr $ 52.08

Employer FICA Medicare a/c Dr $ 12.18

State unemployment tax a/c Dr $ 45.36

Federal Unemployment tax a/c Dr $ 5.04

To FICA Social Security Payable a/c $ 52.08

To FICA Medicare payable a/c $ 12.18

To state unemployment tax payable a/c $ 45.36

To Federal unemployment tax payable a/c $ 5.04.

( Being Employer portion deductions accounted as expenses and payable entry recorded for july month)

3) Journal entry for payment of payroll liabilities

15/8/2018 FICA Social Security Payable a/c Dr $ 104.16

FICA Medicare payable a/c Dr $ 24.36

State unemployment tax payable a/c Dr $ 45.36

Federal unemployment tax payable a/c Dr $ 5.04.

Withholding tax payable a/c Dr $ 93.088  

To Bank a/c $ 272.008

BUDGET FOR EXPENSES- JULY MONTH

Advertising - $ 50

Rent p.m - $ 500

Subscription expense - $ 91.96

Telephone expense - $ 100

Website expense - $ 150

Licensing - $ 100

Office Supplies - $ 200

Professional fee - $ 400

Payroll expenses

.Gross pay $ 840

Employer taxes $ 114.66

Total Budget Expenses per month = $ 891.96+ $ 700+ $ 840+$ 114.66

= $ 2546.62