Exam 10: Current Liabilities and Payroll

According to a summary of the payroll of Scotland Company,$450,000 was subject to the 7.0% social security tax and $500,000 was subject to the 1.5% Medicare tax.Federal income tax withheld was $98,000.Also,$15,000 was subject to state (4.2%)and federal (0.8%)unemployment taxes.The journal entry to record accrued salaries would include:

Use the following information to answer the following questions. Assuming no employees are subject to ceilings for their earnings,Jensen Company has the following information for the pay period of January 15 - 31,20xx. Salaries Payable would be recorded in the amount of:

Journalize the following entries on the books of the borrower and creditor.Label accordingly.(Assume a 360-day year is used for interest calculations. )

FICA tax becomes a liability to the federal government at the time an employee's payroll is prepared.

Carmen Flores' weekly gross earnings for the week ending Dec.7th were $2,500,and her federal income tax withholding was $525.Prior to this week Flores had earned $98,000 for the year.Assuming the social security rate is 6% on the first $100,000 of annual earnings and Medicare is 1.5% of all earnings,what is Flores' net pay?

On October 30,Seba Salon,Inc.issued a 90-day note with a face amount of $60,000 to Reyes Products,Inc.for merchandise inventory.Assuming a 360-day year,determine the proceeds of the note assuming the note is discounted at 8%.

The following totals for the month of June were taken from the payroll register of Arcon Company: The entry to record the payment of net pay would include a

The journal entry a company uses to record pension rights that have not been funded for its salaried employees,at the end of the year is

The journal entry a company uses to record the payment of an interest-bearing note is

Journalize the following transactions for Riley Corporation:

For an interest bearing note payable,the amount borrowed is equal to the face amount of the note.

Payroll taxes are based on the employee's net pay.

The accounting for defined benefit plans is usually very easy and straight forward.

Medicare taxes are paid by both the employee and the employer.

Current liabilities are:

Assume that social security taxes are payable at a 6% rate on the first $100,000 of earnings and Medicare taxes are payable at a 1.5% rate with no maximum earnings,and that federal and state unemployment compensation taxes total 4.6% on the first $7,000 of earnings.If an employee,George Jones,earns $2,500 for the current week and Jones' year-to-date earnings before this week were $6,800,what is the total payroll taxes related to the current week?

Medicare taxes are withheld from an employee's pay only until the employee has earned a specific amount each year.

Darius Company has the following information for the pay period of January 15 - 31,20xx. Assuming no employees are subject to ceilings for their earnings,calculate Salaries Payable and Employer Payroll Taxes Payable.

During the first year of operations,employees earned vacation pay of $35,000.The vacations will be taken during the second year.The vacation pay expense should be recorded in the second year as the vacations are taken by the employees.

In order to be a recorded contingent liability,the liability must be possible and easily estimated.