Horngren's Accounting (12th Edition)
12th Edition
ISBN: 9780134486444
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 11, Problem E11.20E
Recording employee and employer payroll taxes
Learning Objective 2
2. Salaries and Wages Payable $15,923.20
County Company had the following partially completed payroll register.
| Earnings | Withholdings | Net Pay | Check No. | Salaries and Wages Expense | |||||||
| Beginning Cumulative Earnings | Current Period Earnings | Ending Cumulative Earnings | OASDI | Medicare | Income Tax | Health Insurance | United Way | Total Withholdings | |||
| $ 77,000 | $ 4,500 | $ 900 | $90 | $ 15 | 801 | ||||||
| 112,000 | 7,200 | 1,200 | 144 | 35 | 802 | ||||||
| 48,000 | 3,300 | 600 | 66 | 0 | 803 | ||||||
| 61,000 | 3,300 | 850 | 66 | 20 | 804 | ||||||
| 0 | 4,500 | 1,100 | 90 | 0 | 805 | ||||||
| $ 298,000 | $22,800 | $4,650 | $456 | $70 | |||||||
Requirements
- Complete the payroll register. Round to two decimals.
- Journalize County Company’s salaries and wages expense accrual for the current pay period.
- Journalize County Company’s expenses for employer payroll taxes for the current pay period.
- Journalize the payment to employees.
- Journalize the payment for withholdings and employer payroll taxes.
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Question text
The totals from the first payroll of the year are shown below.
Total
Earnings
FICA
OASDI
FICA
HI
FIT
W/H
State
Tax
Union
Dues
Net
Pay
$36,195.10
$2,244.10
$524.83
$6,515.00
$361.95
$500.00
$26,049.22
Journalize the entry to deposit the FICA and FIT taxes.
Exhibit 6-1
The totals from the first payroll of the year are shown below.
Total
Earnings
$36,195.10
FICA
OASDI
$2,244.10
FICA
HI
$524.83
Refer to Exhibit 6-1. Journalize the entry to record the payroll.
FIT
W/H
$6,515.00
State
Tax
$361.95
Union
Dues
$500.00
Net
Pay
$26,049.22
Payment and distribution of payroll
similar to Self-Study Problem 1
P3-6
The general ledger of Smokey Mountain Mfg., Inc., showed the
following credit balances on January 15:
FICA Tax Payable
3,100.00
...
Employees Income Tax Payable
1,937.50
FUTA Tax Payable
193.75
State Unemployment Tax Payable
775.00
Direct labor earnings amounted to $10,500 from January 16 to
31. Indirect labor was $5,700, and sales and administrative
salaries for the same period amounted to $3,800. All wages are
subject to FICA, FUTA, state unemployment taxes, and 10%
income tax withholding.
Required:
1. Prepare the journal entries for the following:
a. Recording the payroll.
b. Paying the payroll.
c. Recording the employer's payroll tax liability.
d. Distributing the payroll costs for January 16 to 31.
2. Prepare the journal entry to record the payment of the
amounts due for the month for FICA and income tax
withholdings.
3. Calculate the amount of total earnings for the period from
January 1 to 15.
Chapter 11 Solutions
Horngren's Accounting (12th Edition)
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