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EXERCISE 13-8 - (a Cash(150 X $4,000 600,000 Sales 600,000...

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EXERCISE 13-8 (10–15 minutes) Wages and Salaries Expense ........................................ 480,000 Withholding Taxes Payable .................................. 80,000 FICA Taxes Payable* ............................................. 28,040 Union Dues Payable .............................................. 9,000 Cash ........................................................................ 362,960 *[($480,000 – $140,000) X 7.65% = $26,010] $140,000 X 1.45% = $2,030; $26,010 + $2,030 = $28,040 Payroll Tax Expense ....................................................... 29,440 FICA Taxes Payable ............................................... 28,040 (See previous computation.) Federal Unemployment Tax Payable [($480,000 – $410,000) X .8%) ............................ 560 State Unemployment Tax Payable [$70,000 X (3.5% – 2.3%)] ................................... 840 EXERCISE 13-10 (10–15 minutes)
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Unformatted text preview: (a) Cash (150 X $4,000). ............................................... 600,000 Sales. .............................................................. 600,000 Warranty Expense. ................................................. 17,000 Cash, Inventory, Accrued Payroll. ............... 17,000 Warranty Expense ($45,000* – $17,000). .............. 28,000 Liability Under Warranties. ........................... 28,000 *(150 X $300) (b) Cash. ........................................................................ .................................................................................. 600,000 Sales. .............................................................. 600,000 Warranty Expense. ................................................. 17,000 Cash, Inventory, Accrued Payroll. ............... 17,000...
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