hmwk_ch10 - PRACTICE EXERCISES PE 101A a $120,000 b...

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PRACTICE EXERCISES PE 10–1A a. $120,000. b. $117,600. [$120,000 – ($120,000 × 90/360 × 8%)] PE 10–1B a. $50,000. b. $49,750. [$50,000 – ($50,000 × 30/360 × 6%)] PE 10–2A Total wage payment $ 1,680.00 One allowance (provided by IRS) $63.00 Multiplied by allowances claimed on Form W-4 × 3 189 .00 Amount subject to withholding $ 1,491 .00 Initial withholding from wage bracket in Exhibit 3 $ 275.55 Plus additional withholding: 28% of excess over $1,409 22 .96 * Federal income tax withholding $ 298 .51 *($1,491 – $1,409) × 28%. PE 10–2B Total wage payment $600.00 One allowance (provided by IRS) $63.00 Multiplied by allowances claimed on Form W-4 × 1 63 .00 Amount subject to withholding $ 537 .00 Initial withholding from wage bracket in Exhibit 3 $ 14.10 Plus additional withholding: 15% of excess over $192 51 .75 * Federal income tax withholding $ 65 .85 *($537 – $192) × 15%.
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Total wage payment $1,680.00 Less: Federal income tax withholding 298.51 Earnings subject to social security tax ($100,000 – $99,000) $1,000.00 Social security tax rate × 6% Social security tax 60.00 Medicare tax ($1,680 × 1.5%) 25 .20 Net pay $ 1,296 .29 PE 10–3B Total wage payment $ 600.00 Less: Federal income tax withholding 65.85 Earnings subject to social security tax 600.00 Social security tax rate × 6% Social security tax 36.00 Medicare tax ($600 × 1.5%) 9 .00 Net pay $ 489 .15 PE 10–4A Salaries Expense. ........................................................... 21,000 Social Security Tax Payable. ................................... 1,260 Medicare Tax Payable. ............................................. 315 Employees Federal Income Tax Payable. .............. 3,822 Salaries Payable. ...................................................... 15,603 PE 10–4B Salaries Expense. ........................................................... 450,000 Social Security Tax Payable. ................................... 25,650 Medicare Tax Payable. ............................................. 6,750 Employees Federal Income Tax Payable. .............. 89,100 Retirement Savings Deductions Payable. .............. 27,000 Salaries Payable. ...................................................... 301,500
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hmwk_ch10 - PRACTICE EXERCISES PE 101A a $120,000 b...

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