WEEK 5 ASSIGNMENT ACCT 422

WEEK 5 ASSIGNMENT ACCT 422 - P13-4 (Payroll Tax Entries)...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
P13-4 (Payroll Tax Entries) Below is a payroll sheet for Jedi Import Company for the month of September 2007. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% F.I.C.A. tax on employee and employer on a maximum of $90,000. In addition, 1.45% is charged both employer and employee for an employee’s wage in excess of $90,000 per employee. Income Earnings September Tax State Federal Name to Aug. 31 Earnings Withholding F.I.C.A. U.C. U.C. B.D. Williams $106,800 $10,800 D. Prowse 6,300 700 K. Baker 7,600 1,100 F. Oz 13,600 1,900 A. Daniels 105,000 15,000 B. Mayhew 112,000 16,000 Instructions (a) Complete the payroll sheet and make the necessary entry to record the payment of the payroll. (b) Make the entry to record the payroll tax expenses of Jedi Import Company. (c) Make the entry to record the payment of the payroll liabilities created. Assume that
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

WEEK 5 ASSIGNMENT ACCT 422 - P13-4 (Payroll Tax Entries)...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online