ppear in the Earnings to Date column of the  employees’ earnings records for 10 full- and part-time workers in Ranger Company. These  amounts represent the cumulative earnings for each worker as of November 1, the company’s  last payday. The form also gives the gross a

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The form below shows the amounts that appear in the Earnings to Date column of the 
employees’ earnings records for 10 full- and part-time workers in Ranger Company. These 
amounts represent the cumulative earnings for each worker as of November 1, the company’s 
last payday. The form also gives the gross amount of earnings to be paid each worker on the 
next payday, November 8.
In the state where Ranger Company is located, the tax rates and bases are as follows:
Tax on Employees:
FICA—OASDI 6.2% on first $137,700
FICA—HI 1.45% on total earnings
SUTA 0.5% on first $8,000
Tax on Employer:
FICA—OASDI 6.2% on first $137,700
FICA—HI 1.45% on total earnings
FUTA 0.6% on first $7,000
SUTA 2.8% on first $8,000
In the appropriate columns of the form below, do the following:
Compute the amount to be withheld from each employee’s earnings on November 8 for (a) 
FICA—OASDI, (b) FICA—HI, and (c) SUTA, and determine the total employee taxes.
Record the portion of each employee’s earnings that is taxable under FICA, FUTA, and SUTA, 
and calculate the total employer’s payroll taxes on the November 8 payroll. Once you have 
calculated the payroll taxes then:
1. Journalize the entry to record the payroll.

2
from Employees' Earning
Under
4
FICA
FICA
FUTA
SUTA
Earnings to
Date
Gross
Earnings
5 Employee:
6 Watson, Ruth T.
7 Kinder, Ralph A.
8 Sanchez, Robert T.
9 Carey, Mary C.
10 Сох, Mason, M.
11 Kenni, Jack T.
12 Britmayer, Tim A.
13 Candi Mark B.
14 Вохer, Barbara C.
15 MicBride, James W. $
16 Total Employee Taxes
OASDİ
HI
SUTA
OSADI
HI
$ 139,000.00
$ 14,950.00 $ 410.00
2$
#######
25.42
5.95
410
410
395
4,060.00 $ 395.00
$
24.49
5.73
1.98
395
395
395
8,190.00 $ 295.00
18.29
4.28
295
295
$
6,460.00 $ 425.00
26.35
6.16
2.13
425
425
425
425
$ 137,500.00
8,905.00 $ 490.00
$
2$
6,825.00 $ 325.00
$ 57,000.00
#######
30.38
7.11
490
490
20.15
4.71
1.63
325
325
325
325
#######
3,615.00 $ 195.00
12.09
2.83
0.98
195
195
195
195
157.17
36.77
6.72
17
18
19 Taxable Earnings
20 *Applicable tax rate
21 Totals
22 Total payroll taxes
2535
2535
1185
1185
6.2%
1.45%
0.6%
2.8%
157.17
36.76
7.11
33.18
234.22
23
24
or
Transcribed Image Text:2 from Employees' Earning Under 4 FICA FICA FUTA SUTA Earnings to Date Gross Earnings 5 Employee: 6 Watson, Ruth T. 7 Kinder, Ralph A. 8 Sanchez, Robert T. 9 Carey, Mary C. 10 Сох, Mason, M. 11 Kenni, Jack T. 12 Britmayer, Tim A. 13 Candi Mark B. 14 Вохer, Barbara C. 15 MicBride, James W. $ 16 Total Employee Taxes OASDİ HI SUTA OSADI HI $ 139,000.00 $ 14,950.00 $ 410.00 2$ ####### 25.42 5.95 410 410 395 4,060.00 $ 395.00 $ 24.49 5.73 1.98 395 395 395 8,190.00 $ 295.00 18.29 4.28 295 295 $ 6,460.00 $ 425.00 26.35 6.16 2.13 425 425 425 425 $ 137,500.00 8,905.00 $ 490.00 $ 2$ 6,825.00 $ 325.00 $ 57,000.00 ####### 30.38 7.11 490 490 20.15 4.71 1.63 325 325 325 325 ####### 3,615.00 $ 195.00 12.09 2.83 0.98 195 195 195 195 157.17 36.77 6.72 17 18 19 Taxable Earnings 20 *Applicable tax rate 21 Totals 22 Total payroll taxes 2535 2535 1185 1185 6.2% 1.45% 0.6% 2.8% 157.17 36.76 7.11 33.18 234.22 23 24 or
P3
JX
A B
DE F G HIJKL M N
1
Date
Account Titles and Description PR
Dr.
Cr.
3
4
5
6.
7
8
9
10
11
12
13
14
15
16
17
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19
20
21
22
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Transcribed Image Text:P3 JX A B DE F G HIJKL M N 1 Date Account Titles and Description PR Dr. Cr. 3 4 5 6. 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44
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