On January 8, the end of the first weekly pay period of the
year, Royal Company's payroll register showed that itsemployees
earned $21,760 of office salaries and $60,840 of salessalaries.
Withholdings from the employees' salaries include FICASocial
Security taxes at the rate of 6.20%, FICA Medicare taxes atthe
rate of 1.45%, $13,560 of federal income taxes, $1,340 ofmedical
insurance deductions, and $880 of union dues. No employeeearned
more than $7,000 in this first period.
1.1 Calculate FICA Social Security taxes payable andFICA
Medicare taxes payable by the employees of RoyalCompany.
FICAââ¬âSocial sec. taxes payable $ FICAââ¬âMedicaretaxes payable $
1.2 Prepare the journal entry to recordRoyal Company's January 8 (employee) payroll expenses andliabilities. (Roundyour answers to 2 decimal places. Omit the "$" sign in yourresponse.)
Date General Journal Debit Credit Jan. 8
2. Prepare the journal entry to recordRoyal's (employer) payroll taxes resulting from the January 8payroll. Royal's merit rating reduces its state unemployment taxrate to 6% of the first $7,000 paid each employee. The federalunemployment tax rate is 0.8%. (Round your answers to 2decimal places. Omit the "$" sign in your response.)
Date General Journal Debit Credit Jan. 8
On January 8, the end of the first weekly pay period of the
year, Royal Company's payroll register showed that itsemployees
earned $21,760 of office salaries and $60,840 of salessalaries.
Withholdings from the employees' salaries include FICASocial
Security taxes at the rate of 6.20%, FICA Medicare taxes atthe
rate of 1.45%, $13,560 of federal income taxes, $1,340 ofmedical
insurance deductions, and $880 of union dues. No employeeearned
more than $7,000 in this first period.
1.1 Calculate FICA Social Security taxes payable andFICA
Medicare taxes payable by the employees of RoyalCompany.
| FICAââ¬âSocial sec. taxes payable | $ |
| FICAââ¬âMedicaretaxes payable | $ |
| 1.2 | Prepare the journal entry to recordRoyal Company's January 8 (employee) payroll expenses andliabilities. (Roundyour answers to 2 decimal places. Omit the "$" sign in yourresponse.) |
| Date | General Journal | Debit | Credit |
| Jan. 8 | |||
| 2. | Prepare the journal entry to recordRoyal's (employer) payroll taxes resulting from the January 8payroll. Royal's merit rating reduces its state unemployment taxrate to 6% of the first $7,000 paid each employee. The federalunemployment tax rate is 0.8%. (Round your answers to 2decimal places. Omit the "$" sign in your response.) |
| Date | General Journal | Debit | Credit |
| Jan. 8 | |||
Related questions
Lee Financial Services pays employees monthly. Payroll information is listed below for January 2018, the first month of Lee's fiscal year. Assume that none of the employees exceeded any relevant wage base.
| Salaries | $ | 550,000 | |
| Federal income taxes to be withheld | 110,000 | ||
| Federal unemployment tax rate | 0.60 | % | |
| State unemployment tax rate (after FUTA deduction) | 5.40 | % | |
| Social security tax rate | 6.20 | % | |
| Medicare tax rate | 1.45 | % | |
Required:
Calculate the income and payroll taxes for the January 2018 pay period. Prepare the appropriate journal entries to record salaries and wages expense (not paid) and payroll tax expense for the January 2018 pay period.
A company's had fixed interest expense of $3,300, its incomebefore interest expense and income taxes is $16,200, and its netincome is $6,600. The company's times interest earned ratioequals: |
2.45.
0.50.
4.91.
2.00.
0.20.
A company's income before interest expense and income taxes is$225,000 and its interest expense is $75,000. Its times interestearned ratio is: |
2.67
0.99
3.00
0.33
1.68
A company's fixed interest expense is $9,000, its income beforeinterest expense and income taxes is $38,250. Its net income is$11,850. The company's times interest earned ratio equals: |
0.235.
0.76.
3.23.
4.25.
0.31.
An employee earned $43,600 during the year working for anemployer when the maximum limit for Social Security was $117,000.The FICA tax rate for Social Security is 6.2% and the FICA tax ratefor Medicare is 1.45%. The employee's annual FICA taxes amountis: |
$632.20.
$2,703.20.
$6,670.80.
$6,670.80.
$3,335.40.
An employee earned $5,300 working for an employer in the currentyear. The current rate for FICA Social Security is 6.2% payable onearnings up to $117,000 maximum per year and the rate for FICAMedicare 1.45%. The employer's total FICA payroll tax for thisemployee is: |
$405.45.
Zero, since the FICA tax is a deduction from an employee's pay,and not an employer tax.
$76.85.
$328.60.
$810.90.
An employee earned $62,400 during the year working for anemployer. The FICA tax rate for Social Security is 6.2% and theFICA tax rate for Medicare is 1.45%. The current FUTA tax rate is0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes areapplied to the first $7,000 of an employee's pay. What is theamount of total unemployment taxes the employee mustpay?
$101.50
$56.00
$378.00
$434.00
$0.00
Employees earn vacation pay at the rate of one day per month.During the month of July, 16 employees qualify for one vacation dayeach. Their average daily wage is $91 per day. What is the amountof vacation benefit expense to be recorded for the month ofJuly? |
$16.0
$14,560.0
$1,456.0
$91.0
$145.6
A company estimates that warranty expense will be 4% of sales.The company's sales for the current period are $233,000. Thecurrent period's entry to record the warranty expense is:
Debit Warranty Expense $9320 credit Sales $9320.
Debit Warranty Expense $9320 credit Estimated Warranty Liability$9320.
Debit Estimated Warranty Liability $9320 credit Warranty Expense$7400.
Debit Estimated Warranty Liability $9320 credit Cash $9320.
No entry is recorded until the items are returned for warrantyrepairs.
A company has a selling price of $2,050 each for its printers.Each printer has a 2 year warranty that covers replacement ofdefective parts. It is estimated that 3% of all printers sold willbe returned under the warranty at an average cost of $155 each.During November, the company sold 35,000 printers, and 450 printerswere serviced under the warranty at a total cost of $60,000. Thebalance in the Estimated Warranty Liability account at November 1was $31,500. What is the company's warranty expense for the monthof November? |
$69,750
$60,000
$81,375
$162,750
$28,500
An employee earns $6,500 per month working for an employer. TheFICA tax rate for Social Security is 6.2% and the FICA tax rate forMedicare is 1.45%. The current FUTA tax rate is 0.8%, and the SUTAtax rate is 5.4%. Both unemployment taxes are applied to the first$7,000 of an employee's pay. The employee has $222 in federalincome taxes withheld. The employee has voluntary deductions forhealth insurance of $190 and contributes $95 to a retirement planeach month. What is the amount of net pay for the employee for themonth of January? (Round your intermediate calculations totwo decimal places.) |
$5,495.75
$5,590.00
$5,144.75
$5,092.75
$5,443.75
