Ch 8 In class Problems(1) (Autosaved).docx

Ch 8 In class Problems(1) (Autosaved).docx - ACC203 -1 Part...

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ACC203 c1706b48eb64f2adbefffdff94a1a322ca495ea5.docx - 1 - Part A: recording payroll During January, Deluxe Printing pays employee salaries of $1 million. Withholdings in January are $76,500 for the employee portion of FICA, $210,000 for federal and state income tax, and $40,000 for the employee portion of health insurance (payable to Blue Cross/Blue Shield). The company incurs an additional $38,000 for federal and state unemployment tax and $30,000 for the employer portion of health insurance. 1. Record the employee salary expense, withholdings, and salaries payable. 2. Record the employer-provided fringe benefits. 3. Record the employer payroll taxes. Part B: Warranty Rotary Tools sells power tools and backs each product it sells with a one-year warranty against defects. Based on previous experience, the company expects warranty costs to be approximately 5% of sales. By the end of the first year, sales and actual warranty expenditures are $800,000 and $13,000, respectively.
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  • Fall '17
  • musab kurnaz
  • Balance Sheet, Generally Accepted Accounting Principles

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