Excelsior, Inc. has one employee who has worked January - October of the current year. The employee is married, paid weekly, and claims two allowances on her W-2. Her federal payroll tax withholding is $227. The company is in a state that has no state income taxes. The FICA Social Security tax rate is 6.2% on the first $118,500 of wages and the FICA Medicare tax rate is 1.45% on all wages. Excelsior, Inc.'s FUTA tax rate is 0.6% on the first $7,000 of wages and their SUTA tax rate is 2.3% on the first $8,000 of wages. The employee's earnings thus far are as follows: Gross pay Jan-Oct Gross pay for Nov. 15th $117,700 $1,580 Use the information above to calculate all of the taxes that should be withheld from the employees paycheck and her net pay for the November 15th pay period. Prepare the journal entry Excelsior, Inc. will record to accrue the November 15th wages for this employee. Round values to 2 decimal places if needed. Date 11/15 Description Debit Credit to accrue salaries and withholding for the November 15th payroll

Excelsior, Inc. has one employee who has worked January - October of the current year. The employee is married, paid weekly, and claims two allowances on her W-2. Her federal payroll tax withholding is $227. The company is in a state that has no state income taxes. The FICA Social Security tax rate is 6.2% on the first $118,500 of wages and the FICA Medicare tax rate is 1.45% on all wages. Excelsior, Inc.'s FUTA tax rate is 0.6% on the first $7,000 of wages and their SUTA tax rate is 2.3% on the first $8,000 of wages. The employee's earnings thus far are as follows: Gross pay Jan-Oct Gross pay for Nov. 15th $117,700 $1,580 Use the information above to calculate all of the taxes that should be withheld from the employees paycheck and her net pay for the November 15th pay period. Prepare the journal entry Excelsior, Inc. will record to accrue the November 15th wages for this employee. Round values to 2 decimal places if needed. Date 11/15 Description Debit Credit to accrue salaries and withholding for the November 15th payroll

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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