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1b11_P6k_war9_ver2_fa08-1 - (a(1 40 hours at $15 $600.00 8...

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Chapter 11—Current Liabilities 6. The following information is for employee Robert Ellis for the week ended March 15. Total hours worked: 48 Rate: $15 per hour, with double time for all hours in excess of 40 Federal income tax withheld: $200 United Fund deduction: $50 Cumulative earnings prior to current week: $6,400 Tax rates: Social security: 6% on maximum earnings of $100,000. Medicare tax: 1.5% on all earnings; on both employer and employee State unemployment: 3.4% on maximum earnings of $7,000; on employer Federal unemployment: 0.8% on maximum earnings of $7,000; on employer (a) Determine (1) total earnings, (2) total deductions, and (3) cash paid. (b) Determine each of the employer's payroll taxes related to the earnings of Robert Ellis for the week ended March 15. c) As related to only this employee, make the appropriate employer's side journal entries for both parts a and b above. ANS:
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Unformatted text preview: (a) (1) 40 hours at $15 $600.00 8 hours at $30 240.00 $840.00 (2) Deductions: Income tax $200.00 United Fund deduction 50.00 Social Security tax, 6% of $840 50.40 Medicare tax, 1.5% of $840 12.60 313.00 (3) Cash paid $ 527.00 ========= (b) Social security and Medicare taxes, 7.5% of $840 $ 63.00 State unemployment tax, 3.4% $600 20.40 Federal unemployment tax, 0.8% $600 4.80 Total $ 88.20 ========= 7 Chapter 11—Current Liabilities c) part a) ========= Dr. Salary or Wages Expense $840 Cr. Income Tax Payabe $200.00 Cr. Social Security Tax Payable $50.40 Cr. Medicare Tax Payable 12.60 Cr United Fund Payabe 50.00 Cr. Salaries or Wages Payable 527.00 Part b) Dr. Payroll Tax Expense $88.20 Cr. Social Security Tax Payable $50.40 Cr. Medicare Tax Payable 12.60 Cr. Federal Unemployment Tax Payable 4.80 Cr. State Unemployment Tax Payable 20.40 DIF: 4 OBJ: 04 8...
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