For all payroll calculations, use the following tax rates and round amounts to the nearest cent Employee: OASDI: 6.2% on first $118,500 earned; Medicare 1.45% up to $200,000, 2.35% on earnings above $200,000. Employer: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. Accounting for a note payable On December 31,2017, Franklin purchased $13,000 of merchandise inventory on a one-year, 9% note payable. Franklin uses a perpetual inventory system. Requirements Journalize the company’s purchase of merchandise inventory on December 31, 2017. Journalize the company’s accrual of interest expense on June 30,2018 its fiscal year-end. Journalize the company’s payment of the note plus interest on December 31,2018.

For all payroll calculations, use the following tax rates and round amounts to the nearest cent Employee: OASDI: 6.2% on first $118,500 earned; Medicare 1.45% up to $200,000, 2.35% on earnings above $200,000. Employer: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. Accounting for a note payable On December 31,2017, Franklin purchased $13,000 of merchandise inventory on a one-year, 9% note payable. Franklin uses a perpetual inventory system. Requirements Journalize the company’s purchase of merchandise inventory on December 31, 2017. Journalize the company’s accrual of interest expense on June 30,2018 its fiscal year-end. Journalize the company’s payment of the note plus interest on December 31,2018.

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 2PB

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For all payroll calculations, use the following tax rates and round amounts to the nearest cent. Employee: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. Employer: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. Carti Little works for PHIL’S BURGERS all year and earns a monthly salary of $12,100. There is no overtime pay. Lily’s income tax withholding rate is 10% of gross pay. In addition to payroll taxes, Carti elects to contribute 5% monthly to United Way. PHIL’S BURGERS also deducts $250 monthly for co-payment of the health insurance premium. As of September 30, Carti had $108,900 of cumulative earnings. Requirements Compute Carti’s net pay for October. Journalize the accrual of salaries expense and the payment related to the employment of Carti Little.
For all payroll calculations, use the following tax rates and round amounts to the nearest cent Employee: OASDI: 6.2% on first $118,500 earned; Medicare 1.45% up to $200,000, 2.35% on earnings above $200,000.</p><p>Employer: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned.Recording Sales tax On July 5, Williams Company recorded sales of merchandise inventory on account $55,000. The sales were subject to sales tax of 4%. On August 15, Williams Company paid the sales tax owed to the state from the July 5 transaction. Requirements Journalize the transaction to record the sale on July 5. Ignore cost of goods sold. Journalize the transaction to record the payment of sales tax to the state on August 15.
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For all payroll calculations, use the following tax rates and round amounts to the nearest cent Employee: OASDI: 6.2% on first $118,500 earned; Medicare 1.45% up to $200,000, 2.35% on earnings above $200,000. Employer: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. Computing payroll amounts considering FICA tax limits Lily Carter works for JDK all year and earns a monthly salary of $12,100. There is no overtime pay. Lily’s income tax withholding rate is 10% of gross pay. In addition to payroll taxes, Lily elects to contribute 5% monthly to United Way. JDK also deducts $250 monthly for co-payment of the health insurance premium. As of September 30, Lily had $108,900 of cumulative earnings. Requirements Compute Lily’s net pay for October. Journalize the accrual of salaries expense and the payment related to the employment of Lily Carter.
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