View the step-by-step solution to:

Total payroll of Waston Co. was $1,840,000 of which $320,000 represented amounts paid in excess of $106,800 to certain employees. The amount paid to...

I have to questions I haven't been able to answer. I just need to see the work so I can follow the answer.

1. Total payroll of Waston Co. was $1,840,000 of which $320,000 represented amounts paid in excess of $106,800 to certain employees. The amount paid to employees in excess of $7,000 was $1,440,000. Income taxes withheld were $450,000. The state unemployment tax is 1.2%, the federal unemployment tax is .8% and the F.I.C.A tax is 7.65% on an employee’s salaries and wages to $106,800 and 1.45% in excess of $106,800. Instructions: (Show all work) a) Prepare the journal entry for the salaries and wages paid. b) Prepare the entry to record the employer payroll taxes. 2. DJ Co. is a calendar year firm with 120million common shares outstanding throughout 2013. As part of its executive compensation plan, at January 1, 2012, the company had issued 12 million executive stock options permitting executives to buy 12 million shares of stock for $10 each within the next eight years, but not prior to January 1, 2015. The fair value of the options was estimated on the grant date to be $3 per option. The stock options qualify for tax purposes as an incentive plan. The company’s net income was $480 million in 2013. Its income tax rate is 40%. The average market price of the stock during 2013 was $12 per share. Instructions: (show al work) a) Determine the basic and dilutive EPS (rounded to two decimal places) for DJ in 2013.
Background image of page 1
Sign up to view the entire interaction

Top Answer

Attached Excel contains... View the full answer

Solutions to assignment of juli277newyork (Mar 11).xlsx

Solutions to assignment of juli277newyork (Mar 11)
a) Waston Co.
Salaries and wages expense
Federal witholding taxes payable
FICA taxes payable
Cash $ 1,840,000
$ 450,000

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.


Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online