WK 5 LT Assignment upload - P13-4 (Payroll Tax Entries)...

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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. Name F.I.C.A. B.D. Williams $6,800 $800 $80 $122.40 $2.00 $1.60 D. Prowse 6,300 700 70 107.10 7.00 5.60 K. Baker 7,600 1,100 110 168.30 - - F. Oz 13,600 1,900 190 290.70 - - A. Daniels 105,000 15,000 1,500 435.00 - - B. Mayhew 112,000 16,000 1,600 464.00 - - Total $251,300 $35,500 $3,550 $1,587.50 $9.00 $7.20 Instructions (a) Complete the payroll sheet and make the necessary entry to record the payment of the payroll. Wages and salaries expense $39,843.75 Withholding taxes payable 3,550.00 F.I.C.A. Taxes Payable 793.75 Cash 35,500.00 (b) Make the entry to record the payroll tax expenses of Jedi Import Company. Payroll Tax Expense $809.95 F.I.C.A. Taxes Payable 793.75 State Unemployment Tax Payable 9.00 Federal Unemployment Tax Payable 7.20 (c) Make the entry to record the payment of the payroll liabilities created. Assume that the company pays all payroll liabilities at the end of each month. Withholding Taxes Payable $3,550.00 F.I.C.A. Taxes Payable 1,587.50 State Unemployment Tax Payable 9.00 Federal Unemployment Tax Payable 7.20 Cash $5,153.70 Earnings to Aug. 31 September Earnings Income Tax Withholding State U.C. Federal U.C.
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*E14-21 (Term Modification without Gain—Debtor’s Entries) On December 31, 2007, the Firstar Bank enters into a debt restructuring agreement with Nicole Bradtke Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $2,000,000 note receivable by the
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This note was uploaded on 01/14/2012 for the course ACCOUNTING ACC 422 taught by Professor Unknown during the Spring '11 term at University of Phoenix.

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WK 5 LT Assignment upload - P13-4 (Payroll Tax Entries)...

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