Pearl Hardware payroll for November 2020 is summarized below.           Amount Subject to Payroll Taxes             Unemployment Tax Payroll   Wages Due   FICA   Federal   State Factory   $129,400   $129,400   $37,200   $37,200 Sales   33,600   33,600   4,200   4,200 Administrative   35,000   35,000            Total   $198,000   $198,000   $41,400   $41,400 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 $198,000 wages subject to FICA tax, $19,900 of the sales wages is in excess of $128,400. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $17,200 for factory, $7,300 for sales, and $6,300 for administrative.           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   $     $     $     $       LINK TO TEXT       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.)

College Accounting (Book Only): A Career Approach
12th Edition
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Publisher:Cathy J. Scott
Chapter8: Employer Taxes, Payments, And Reports
Section: Chapter Questions
Problem 3E
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Pearl Hardware payroll for November 2020 is summarized below.

         
Amount Subject to Payroll Taxes
           
Unemployment Tax
Payroll
 
Wages Due
 
FICA
 
Federal
 
State
Factory   $129,400   $129,400   $37,200   $37,200
Sales   33,600   33,600   4,200   4,200
Administrative   35,000   35,000        
   Total   $198,000   $198,000   $41,400   $41,400

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 $198,000 wages subject to FICA tax, $19,900 of the sales wages is in excess of $128,400. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $17,200 for factory, $7,300 for sales, and $6,300 for administrative.
 
 
 
 
 
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   $
 
  $
 
  $
 
  $
 
 
 

LINK TO TEXT
 
 
 
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.)
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