College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 9, Problem 2CE
To determine
Prepare
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Journalizing Payroll Transactions
1. Determine the amount of Social Security and Medicare taxes to be withheld. If required, round your answers to the nearest cent.
2. Record the journal entry for the payroll, crediting Cash for the net pay. When required, enter amounts in dollars and cents. If an amount box does not require an entry, leave it blank.
On December 31, the payroll register of Hamstreet Associates indicated the following information:
Wages and Salaries Expense
$7,900
Employee Federal Income Tax Payable
900
United Way Contributions Payable
190
Earnings subject to Social Security tax
7,200
Payroll Withholdings
1. Determine the amount of Social Security and Medicare taxes to be withheld. If required, round your answers to the nearest cent.
Social Security Tax
$fill in the blank 6752ad03b03cf89_1
Medicare Tax
$fill in the blank 6752ad03b03cf89_2
General Journal
2. Record the journal entry for the payroll,…
Journalizing Payroll Transactions
1. Determine the amount of Social Security and Medicare taxes to be withheld. If required, round your answers to the nearest cent.
2. Record the journal entry for the payroll, crediting Cash for the net pay. When required, enter amounts in dollars and cents. If an amount box does not require an entry, leave it blank.
On December 31, the payroll register of Hamstreet Associates indicated the following information:
Wages and Salaries Expense
$7,700
Employee Federal Income Tax Payable
800
United Way Contributions Payable
190
Earnings subject to Social Security tax
7,200
The following totals for the month of June were taken from the payroll register of Arcon Company:
Salaries expense
$14,580.00
Social security and Medicare taxes withheld
1,093.50
Income taxes withheld
330.00
Retirement savings
496.00
The entry to record the payment of net pay would include a
a.debit to Salaries Payable for $14,580.00.
b.credit to Salaries Expense for $12,660.50.
c.credit to Salaries Payable for $12,660.50.
d.debit to Salaries Payable for $12,660.50.
Chapter 9 Solutions
College Accounting, Chapters 1-27
Ch. 9 - Prob. 1TFCh. 9 - Prob. 2TFCh. 9 - Prob. 3TFCh. 9 - Prob. 4TFCh. 9 - The W-4, which shows total annual earnings and...Ch. 9 - Prob. 1MCCh. 9 - Prob. 2MCCh. 9 - Prob. 3MCCh. 9 - Prob. 4MCCh. 9 - Prob. 5MC
Ch. 9 - Total earnings for the employees of Garys Grill...Ch. 9 - Prob. 2CECh. 9 - Prob. 3CECh. 9 - Prob. 4CECh. 9 - Prob. 1RQCh. 9 - Prob. 2RQCh. 9 - Prob. 3RQCh. 9 - Prob. 4RQCh. 9 - Prob. 5RQCh. 9 - Identify all items that are debited or credited to...Ch. 9 - Prob. 7RQCh. 9 - Prob. 8RQCh. 9 - Prob. 9RQCh. 9 - Prob. 10RQCh. 9 - Prob. 11RQCh. 9 - Prob. 12RQCh. 9 - Prob. 13RQCh. 9 - CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL...Ch. 9 - CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL...Ch. 9 - CALCULATION OF TAXABLE EARNINGS AND EMPLOYER...Ch. 9 - Prob. 4SEACh. 9 - JOURNAL ENTRIES FOR PAYMENT OF EMPLOYER PAYROLL...Ch. 9 - Prob. 6SEACh. 9 - CALCULATING PAYROLL TAXES EXPENSE AND PREPARING...Ch. 9 - JOURNALIZING AND POSTING PAYROLL ENTRIES Cascade...Ch. 9 - Prob. 9SPACh. 9 - CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL...Ch. 9 - Prob. 2SEBCh. 9 - Prob. 3SEBCh. 9 - TOTAL COST OF EMPLOYEE B. F. Goodson employs...Ch. 9 - JOURNAL ENTRIES FOR PAYMENT OF EMPLOYER PAYROLL...Ch. 9 - SUTA taxes on July 31, 20--. WORKERS COMPENSATION...Ch. 9 - Prob. 7SPBCh. 9 - JOURNALIZING AND POSTING PAYROLL ENTRIES Oxford...Ch. 9 - Prob. 9SPBCh. 9 - The director of the art department at an...Ch. 9 - Prob. 1ECCh. 9 - The totals line from Nix Companys payroll register...Ch. 9 - Prob. 1CP
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- The following information about the payroll for the week ended December 30 was obtained from the records of Qualitech Co.: Tax rates assumed: Social security, 6% Medicare, 1.5% State unemployment (employer only), 5.4% Federal unemployment (employer only), 0.8% Instructions 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries: a. December 30, to record the payroll. b. December 30, to record the employers payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, 35,000 is subject to unemployment compensation taxes. 2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries: a. December 30, to record the payroll. b. January 5, to record the employers payroll taxes on the payroll to be paid on January 5. Because it is a new fiscal year, all 675,000 in salaries is subject to unemployment compensation taxes.arrow_forwardThe totals line from Nix Companys payroll register for the week ended March 31, 20--, is as follows: Payroll taxes are imposed as follows: Social Security tax, 6.2%; Medicare tax, 1.45%; FUTA tax, 0.6%; and SUTA tax, 5.4%. REQUIRED 1. a. Prepare the journal entry for payment of this payroll on March 31, 20--. b. Prepare the journal entry for the employers payroll taxes for the period ended March 31, 20--. 2. Nix Company had the following balances in its general ledger before the entries for requirement ( 1 ) were made: a. Prepare the journal entry for payment of the liabilities for federal income taxes and Social Security and Medicare taxes on April 15, 20--. b. Prepare the journal entry for payment of the liability for FUTA tax on April 30, 20--. c. Prepare the journal entry for payment of the liability for SUTA tax on April 30, 20--.arrow_forwardCALCULATING PAYROLL TAXES EXPENSE AND PREPARING JOURNAL ENTRY Selected information from the payroll register of Wrays Drug Store for the week ended July 14,20--, is shown below. The SUTA tax rate is 5.4%, and the FUTA tax rate is 0.6%, both on the first 7,000 of earnings. Social Security tax on the employer is 6.2% on the first 118,500 of earnings, and Medicare tax is 1.45% on gross earnings. REQUIRED 1. Calculate the total employer payroll taxes for these employees. 2. Prepare the journal entry to record the employer payroll taxes as of July 14,20--.arrow_forward
- The payroll register of Seaside Architecture Company indicates $910 of social security and $251 of Medicare tax withheld on total salaries of $15,500 for the period. Federal withholding for the period totaled $3,250. Required: Prepare the journal entry for the period’s payroll. Refer to the Chart of Accounts for exact wording of account titles. Chart Of Accounts CHART OF ACCOUNTS Seaside Architecture Company General Ledger ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Merchandise Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment 126 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 213 Interest Payable 214 Notes Payable 221 Salaries Payable 222 Social Security Tax Payable 223 Medicare Tax Payable 224 Employees Federal Income Tax Payable…arrow_forwardThe following totals for the month of June were taken from the payroll register of Arcon Company: Account Debit Credit Salaries expense $13,980.00 Social security and Medicare taxes withheld 1,048.50 Income taxes withheld 333.00 Retirement savings 501.00 The entry to journalize the payment of net pay would include a a. debit to Salaries Payable for $13,980.00. b. credit to Salaries Payable for $12,097.50. c. debit to Salaries Payable for $12,097.50. d. credit to Salaries Expense for $12,097.50.arrow_forwardThe following totals for the month of June were taken from the payroll register of Arcon Company: Salaries expense $ 10,700.00 Social security and Medicare taxes withheld 802.50 Income taxes withheld 343.00 Retirement savings 459.00 The entry to record the payment of net pay would include a a.credit to Salaries Expense for $9,095.50 b.debit to Salaries Payable for $9,095.50 c.credit to Salaries Payable for $9,095.50 d.debit to Salaries Payable for $10,700.00arrow_forward
- The following totals for the month of June were taken from the payroll register of Arcon Company: Salaries expense $ 13,900.00 Social security and Medicare taxes withheld 1,042.50 Income taxes withheld 317.00 Retirement savings 450.00 The entry to record the payment of net pay would include a Oa. credit to Salaries Payable for $12,090.50 Ob. credit to Salaries Expense for $12,090.50 Oc. debit to Salaries Payable for $12,090.50 Od. debit to Salaries Payable for $13,900.00arrow_forwardThe payroll register of Seaside Architecture Company indicates $960 of social security and $260 of Medicare tax withheld on total salaries of $17,000 for the period. Federal withholding for the period totaled $3,245. Required: Prepare the journal entry for the period’s payroll. Refer to the Chart of Accounts for exact wording of account titles. Chart Of Accounts CHART OF ACCOUNTS Seaside Architecture Company General Ledger ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment 126 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 213 Interest Payable 214 Notes Payable 221 Salaries Payable 222 Social Security Tax Payable 223 Medicare Tax Payable 224 Employees Federal Income Tax Payable 225 Employee…arrow_forwardThe following totals for the month of June were taken from the payroll register of Arcon Company: $11,940.00 Salaries expense Social security and Medicare taxes withheld Income taxes withheld 895.50 289.00 531.00 Retirement savings The entry to record the payment of net pay would include a O a. debit to Salaries Payable for $11,940.00. Ob. credit to Salaries Expense for $10,224.50. O c. debit to Salaries Payable for $10,224.50. Od. credit to Salaries Payable for $10,224.50.arrow_forward
- The following totals for the month of June were taken from the payroll register of Arcon Company: Salaries expense $ 11,110.00 Social security and Medicare Taxes withheld 833.25 Income Taxes withheld 326.00 Retirement Savings 530.00 The entry to record the liability for net pay would include a Select the correct answer. Credit to Salaries Payable for $9,420.75 Debit to Salaries Payable for $11,110.00 Debit to Salaries Payable for $9,420.75 Credit to Salaries Expense for $9,420.75arrow_forwardNix Company had the following balances in its general ledger before the entries for requirement (1) were made: Employee federal income tax payable $2,500 Social Security tax payable 2,008 Medicare tax payable 470 FUTA tax payable 520 SUTA tax payable 4,510 a. Prepare the journal entry for payment of the liabilities for federal income taxes and Social Security and Medicare taxes on April 15, 20--. b. Prepare the journal entry for payment of the liability for FUTA tax on April 30, 20--. c. Prepare the journal entry for payment of the liability for SUTA tax on April 30, 20--.arrow_forwardCALCULATING PAYROLL TAXES EXPENSE AND PREPARING JOURNALENTRY Selected information from the payroll register of Ebeling's Dairyfor the week ended July 7, 20--, is shown below. The SUTA tax rate is5.4%, and the FUTA tax rate is 0.6%, both on the first $7,000 of earnings.Social Security tax on the employer is 6.2% on the first $128,400 ofearnings, and Medicare tax is 1.45% on gross earnings. REQUIRED1. Calculate the total employer payroll taxes for these employees.2. Prepare the journal entry to record the employer payroll taxes asof July 7, 20--arrow_forward
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