hilities and Payroll Accounting Current Liabilities and Payrol Accounting 11-17 Dr. Alexar EX. 11-2 (S o. 6) The following information pertains to the payroll of e Exercis Company for the week ended January 24, 20 and one-half times the regular hourly rate 5 13. All hours over 40 are paid at one Total Hours Federal Income Hourly United Union Employee E. Bouchet45 C. Cullen M. Henson B. Mays Fund 12 10 10.00 Instructions a Complete the schedule below. The state income tax rate is 2% of gross earnings and the (b) Prepare the entry to record the payroll on January 24 C) Prepare the journal entry to record payment of the payroll on January 26 FICA tax rate is 8% of gross earnings (d) R ecord fed 9 the employer’s payroll taxes assuming state unemployment taxes are 54% and eral unemployment taxes are 08% (62%-54%) Gross FICA Income Income United Union Net Earnings Taxes Taxes Taxes Fund Dues Pay Federal State E. Bouchet C. Cullen M. Henson B. Mays
Expert Answer
a) | Gross earnings | FICA taxes 8% | Federal income taxes | State income tax | United Fund | Union dues | Net pay | |
E. Bouchet | 585 | 46.8 | 110 | 11.7 | 10 | 5 | 401.5 | |
C. Cullen | 660 | 52.8 | 138 | 13.2 | 12 | 5 | 439 | |
M. Henson | 380 | 30.4 | 64 | 7.6 | 10 | 5 | 263 | |
B. Mays | 576 | 46.08 | 100 | 11.52 | 14 | 5 | 399.4 | |
2201 | 176.08 | 412 | 44.02 | 46 | 20 | 1502.9 | ||
b) | ||||||||
24-Jan | Salaries and wages expense | 2201 | ||||||
FICA taxes payable | 176.08 | |||||||
Federal income tax payable | 412 | |||||||
State income tax payable | 44.02 | |||||||
United fund payable | 46 | |||||||
Union dues payable | 20 | |||||||
Salaries and wages payable | 1502.9 | |||||||
c) | ||||||||
25-Jan | Salaries and wages payable | 1502.9 | ||||||
Cash | 1502.9 | |||||||
d) | Payroll expenses | 312.54 | ||||||
FICA taxes payable | 176.08 | |||||||
State unemployement taxes payable | 118.85 | (2201*5.4%) | ||||||
Federal unemployement taxes payable | 17.61 | (2201*.8%) |