Cullumber Hardware payroll for November 2020 is summarized below. Amount Subject to Payroll Taxes Unemployment Tax Payroll Wages Due FICA Federal State Factory $126,600 $126,600 $40,500 $40,500 Sales 28,800 28,800 4,200 4,200 Administrative 38,900 38,900 Total $194,300 $194,300 $44,700 $44,700 At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee’s wages to $128,400 and 1.45% in excess of $128,400. Of the $194,300 wages subject to FICA tax, $21,300 of the sales wages is in excess of $128,400. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $16,800 for factory, $7,700 for sales, and $6,800 for administrative. (a) Correct answer icon Your answer is correct. Prepare a schedule showing the employer’s total cost of wages for November by function. (Round answers to 0 decimal places, e.g. 5,275.) Factory Sales Administrative Total Salaries and Wages $ $ $ $ FICA Taxes FUTA Taxes SUTA Taxes Total Cost $ $ $ $ eTextbook and Media List of Accounts Attempts: 2 of 9 used (b) Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer’s payroll taxes. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,125.) Account Titles and Explanation Debit Credit Factory Payroll: (To record salaries and wages expense.) (To record payroll tax expense.) Sales Payroll: (To record salaries and wages expense.) (To record payroll tax expense.) Administrative Payroll: (To record salaries and wages expense.) (To record payroll tax expense.) eTextbook and Media List of Accounts Save for Later

Cullumber Hardware payroll for November 2020 is summarized below. Amount Subject to Payroll Taxes Unemployment Tax Payroll Wages Due FICA Federal State Factory $126,600 $126,600 $40,500 $40,500 Sales 28,800 28,800 4,200 4,200 Administrative 38,900 38,900 Total $194,300 $194,300 $44,700 $44,700 At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee’s wages to $128,400 and 1.45% in excess of $128,400. Of the $194,300 wages subject to FICA tax, $21,300 of the sales wages is in excess of $128,400. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $16,800 for factory, $7,700 for sales, and $6,800 for administrative. (a) Correct answer icon Your answer is correct. Prepare a schedule showing the employer’s total cost of wages for November by function. (Round answers to 0 decimal places, e.g. 5,275.) Factory Sales Administrative Total Salaries and Wages $ $ $ $ FICA Taxes FUTA Taxes SUTA Taxes Total Cost $ $ $ $ eTextbook and Media List of Accounts Attempts: 2 of 9 used (b) Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer’s payroll taxes. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,125.) Account Titles and Explanation Debit Credit Factory Payroll: (To record salaries and wages expense.) (To record payroll tax expense.) Sales Payroll: (To record salaries and wages expense.) (To record payroll tax expense.) Administrative Payroll: (To record salaries and wages expense.) (To record payroll tax expense.) eTextbook and Media List of Accounts Save for Later

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter8: Employer Taxes, Payments, And Reports

Section: Chapter Questions

Problem 3E

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(a)

Correct answer icon

Your answer is correct.

Prepare a schedule showing the employer’s total cost of wages for November by function. (Round answers to 0 decimal places, e.g. 5,275.)

	Factory	Sales	Administrative	Total
Salaries and Wages	$	$	$	$
FICA Taxes
FUTA Taxes
SUTA Taxes
Total Cost	$	$	$	$

eTextbook and Media

List of Accounts

Attempts: 2 of 9 used

(b)

Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer’s payroll taxes. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,125.)

Account Titles and Explanation	Debit	Credit
Factory Payroll:




(To record salaries and wages expense.)




(To record payroll tax expense.)
Sales Payroll:




(To record salaries and wages expense.)




(To record payroll tax expense.)
Administrative Payroll:




(To record salaries and wages expense.)


(To record payroll tax expense.)

eTextbook and Media

List of Accounts

Save for Later

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			Amount Subject to Payroll Taxes
				Unemployment Tax
Payroll	Wages Due	FICA		Federal	State
Factory	$126,600	$126,600		$40,500	$40,500
Sales	28,800	28,800		4,200	4,200
Administrative	38,900	38,900
Total	$194,300	$194,300		$44,700	$44,700