Exam 8: Paying,recording,and Reporting Payroll and Payroll Taxes:

Kristi's Mentoring had the following information for the pay period ending September 30: Assume: FICA-OASDI applied to the first $117,000 at a rate of 6.2%. FICA-Medicare applied at a rate of 1.45%. FUTA applied to the first $7,000 at a rate of 0.8%. SUTA applied to the first $7,000 at a rate of 5.6%. State income tax is 3.8%. Employees contribute to their retirement fund at a rate of 5.5% of their gross earnings. -Prepare the general journal entry to record the payroll. ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________

Businesses will make their payroll tax deposits based on payroll taxes collected.

Prepare a general journal payroll entry for Advanced Computer Programming using the following information: Assume the following: a)FICA: OASDI,6.2% on a limit of $117,000;Medicare,1.45%. b)Federal income tax is 15% of gross pay. c)Each employee pays $20 per week for medical insurance.

Why would a company use a separate payroll cash account?

The payroll tax expense is recorded at the same time the payroll is recorded.

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). - Column 1 Column 2 Column 3 Column 4 FICA-Medicare Payable

Why are the employee deductions recorded as payables on the employer's books?

Tax form 940 is filed annually.

Gail's Bakery had the following information before the pay period ending June 30: Employee Name Pay rate Hours worked Cumulative earnings Department Federal income tax withheld P. Gardner \ 2,000 Salaried \ 12,000 Kitchen \ 86.00 T. Bennitt 10.00/ 50 6,500 Office 22.00 Assume: FICA-OASDI applied to the first $117,000 at a rate of 6.2%. FICA-Medicare applied at a rate of 1.45%. FUTA applied to the first $7,000 at a rate of 0.8%. SUTA applied to the first $7,000 at a rate of 5.6%. State income tax is 3.8%. Given the above information,what would be the amount applied to Office employee wage Expense?

Payroll information for Kinzer's Interior Decorating for the first week in October is as follows: Assume the following tax rates: FICA: OASDI 6.2\% FICA: Medicare 1.45\% Federal unemployment 0.8\% State unemployment 2.0\% Required: Prepare the payroll tax expense entry.

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 1/2) Employee Name Pay Rate Hours Cumulative Department Federal Income Worked Tax Withheld B. Woodard \ 2,000/ wk Salaried \ 98,000 Office \ 779.00 J. Thomas 13.00 51 40,000 Shop 320.00 K. McCann 17.00 46 42,000 Shop 330.00 Assume: FICA-OASDI is 6.2% based on a limit of $117,000. FICA-Medicare is 1.45%. FUTA is .8% based on a limit of $7,000. SUTA is 5.6% based on a limit of $7,000. State income tax is 2.8%. -Prepare the general journal entry to record the employer's payroll tax expense. ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________

Kristi's Mentoring had the following information for the pay period ending September 30: Assume: FICA-OASDI applied to the first $117,000 at a rate of 6.2%. FICA-Medicare applied at a rate of 1.45%. FUTA applied to the first $7,000 at a rate of 0.8%. SUTA applied to the first $7,000 at a rate of 5.6%. State income tax is 3.8%. Employees contribute to their retirement fund at a rate of 5.5% of their gross earnings. -Compute the net pay.

A calendar quarter is made up of:

Plymouth Sharks Hockey Accessories had the following transactions involving the sale of merchandise.You are to prepare the necessary general journal entries.All sales are subject to a 6% sales tax and have a 2/10,n/30 discount terms. December 2 $\quad$ Sold merchandise priced at $\$ 100$ to Cathy Norton on account. December 4 $\quad$ Sold merchandise priced at $\$ 125$ to a cash customer. Decem ber 10 $\quad$ Payment from Cathy Norton received. Decem ber 16 $\quad$ Cash customer returned $\$ 40$ worth of merchandise. -What type of an account is Wages and Salaries Payable?

Sweetman's Recording Studio payroll records show the following information: Assume the following: a)FICA: OASDI,6.2% on a limit of $117,000;Medicare,1.45%. b)Each employee contributes $40 per week for union dues. c)State income tax is 5% of gross pay. d)Federal income tax is 20% of gross pay. Prepare a general journal payroll entry.

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). - Column 1 Column 2 Column 3 Column 4 Payroll Tax Expense

Kristi's Mentoring had the following information for the pay period ending September 30: Assume: FICA-OASDI applied to the first $117,000 at a rate of 6.2%. FICA-Medicare applied at a rate of 1.45%. FUTA applied to the first $7,000 at a rate of 0.8%. SUTA applied to the first $7,000 at a rate of 5.6%. State income tax is 3.8%. Employees contribute to their retirement fund at a rate of 5.5% of their gross earnings. -Prepare the general journal entry to record the employer's payroll tax expense. ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________

Kristi's Mentoring had the following information for the pay period ending September 30: Assume: FICA-OASDI applied to the first $117,000 at a rate of 6.2%. FICA-Medicare applied at a rate of 1.45%. FUTA applied to the first $7,000 at a rate of 0.8%. SUTA applied to the first $7,000 at a rate of 5.6%. State income tax is 3.8%. Employees contribute to their retirement fund at a rate of 5.5% of their gross earnings. -Compute the total state income tax.

The following data applies to the July 15 payroll for the Woodard Research Firm (overtime is paid at 1 1/2) Employee Name Pay Rate Hours Cumulative Department Federal Income Worked Tax Withheld B. Woodard \ 2,000/ wk Salaried \ 98,000 Office \ 779.00 J. Thomas 13.00 51 40,000 Shop 320.00 K. McCann 17.00 46 42,000 Shop 330.00 Assume: FICA-OASDI is 6.2% based on a limit of $117,000. FICA-Medicare is 1.45%. FUTA is .8% based on a limit of $7,000. SUTA is 5.6% based on a limit of $7,000. State income tax is 2.8%. -The correct journal entry to record the payment of SUTA is:

Kristi's Mentoring had the following information for the pay period ending September 30: Assume: FICA-OASDI applied to the first $117,000 at a rate of 6.2%. FICA-Medicare applied at a rate of 1.45%. FUTA applied to the first $7,000 at a rate of 0.8%. SUTA applied to the first $7,000 at a rate of 5.6%. State income tax is 3.8%. Employees contribute to their retirement fund at a rate of 5.5% of their gross earnings. -Prepare the general journal entry to record the payment of the employees. ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________ ___________________________________________ _________ _________