FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current
week are as follows: hours worked, 46; federal income tax withheld, $120; cumulative earnings for the year prior to this week, $5,500; Social
security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the
first $7,000; federal unemployment compensation tax, .8% on the first $7,000. Prepare the journal entry to record the salaries expense.
Do not include dollar signs in the entry. Please round all numerical answers to the nearest cent. For example, 711.267 would be answered
as "711.27". Use the following chart of accounts to ensure that accounts names are spelled correctly.
11
12
13
14
15
17
18
19
21
22
23
24
25
26
27
28
31
32
Cash
Assets
Accounts receivable
Allowance for doubtful accounts
Supplies
Prepaid insurance
Land
Equipment
Accumulated depreciation-equipment
Liabilities
Accounts payable
Salaries payable
Notes payable
Social security taxes payable
Medicare taxes payable
Federal withholding taxes payable
SUTA payable
FUTA payable
Owner's Equity
Retained earnings
Common stock
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Transcribed Image Text:An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $120; cumulative earnings for the year prior to this week, $5,500; Social security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, .8% on the first $7,000. Prepare the journal entry to record the salaries expense. Do not include dollar signs in the entry. Please round all numerical answers to the nearest cent. For example, 711.267 would be answered as "711.27". Use the following chart of accounts to ensure that accounts names are spelled correctly. 11 12 13 14 15 17 18 19 21 22 23 24 25 26 27 28 31 32 Cash Assets Accounts receivable Allowance for doubtful accounts Supplies Prepaid insurance Land Equipment Accumulated depreciation-equipment Liabilities Accounts payable Salaries payable Notes payable Social security taxes payable Medicare taxes payable Federal withholding taxes payable SUTA payable FUTA payable Owner's Equity Retained earnings Common stock
41
51
52
53
54
Revenues
Fees earned
Expenses
Rent expense
Salary expense
Payroll tax expense
Interest expense
Type account names completely and exactly as typed above. No abbreviations. Do not use commas or $ in your numbers. If there is more than one debit or more
than one credit, please enter amounts in descending order.
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Transcribed Image Text:41 51 52 53 54 Revenues Fees earned Expenses Rent expense Salary expense Payroll tax expense Interest expense Type account names completely and exactly as typed above. No abbreviations. Do not use commas or $ in your numbers. If there is more than one debit or more than one credit, please enter amounts in descending order.
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ANSWER:-

 

                                                 JOURNAL ENTRIES

Date Description Post Ref. Debit($) Credit($)
 December 31 Salary Expense   735.00  
         Federal Withholding Taxes               Payable     120.00
        Social Security Taxes Payable     44.10
        Medicare Taxes Payable     11.03
        Salaries Payable     559.87
         
 December 31 Payroll Tax Expense   86.00  
        Social Security Taxes Payable     44.10
        Medicare Taxes Payable     11.03
       State Unemployment Comp.           Taxes Payable     24.99
       Federal Unemployment Comp.         Taxes Payable     5.88
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