Richie Riches, a clothing resale store, employs one salesperson, Danielle Hopeton. Hopeton's straight-time wage is $30 per hour, with time-and-a-half pay for hours above 40. Richie Riches withholds income tax (20%), FICA-OASDI (6.2%), and FICA-Medicare (1.45%) from Hopeton's pay. Richie Riches also pays payroll taxes for FICA-OASDI (6.2%), FICA-Medicare (1.45%), and state and federal unemployment (5.4% and 0.6%, respectively). During the week ended December 26, Hopeton worked 50 hours. Prior to this week, she had earned $1,600. Read the requirements. b. Record the entry that Richie Riches would make for the employer payroll taxes accrual related to Hopeton. (Round all amounts to the nearest whole dollar.) Accounts and Explanation Debit Credit Date b. c. Record the entry that Richie Riches would make for payment of all payroll taxes (employee and employer related). (Prepare a single compound journal entry. Round I amounts to the nearest whole dollar.) Date Accounts and Explanation Credit Requirement 3. How much was Richie Riches' total payroll expense for the week? The company's total payroll expense for the week was Debit

Richie Riches, a clothing resale store, employs one salesperson, Danielle Hopeton. Hopeton's straight-time wage is $30 per hour, with time-and-a-half pay for hours above 40. Richie Riches withholds income tax (20%), FICA-OASDI (6.2%), and FICA-Medicare (1.45%) from Hopeton's pay. Richie Riches also pays payroll taxes for FICA-OASDI (6.2%), FICA-Medicare (1.45%), and state and federal unemployment (5.4% and 0.6%, respectively). During the week ended December 26, Hopeton worked 50 hours. Prior to this week, she had earned $1,600. Read the requirements. b. Record the entry that Richie Riches would make for the employer payroll taxes accrual related to Hopeton. (Round all amounts to the nearest whole dollar.) Accounts and Explanation Debit Credit Date b. c. Record the entry that Richie Riches would make for payment of all payroll taxes (employee and employer related). (Prepare a single compound journal entry. Round I amounts to the nearest whole dollar.) Date Accounts and Explanation Credit Requirement 3. How much was Richie Riches' total payroll expense for the week? The company's total payroll expense for the week was Debit

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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