Question: Ravello companys first weekly pay period of the year ends

Ravello Company’s first weekly pay period of the year ends on January 8. On that date, the column totals in Ravello’s payroll register indicate its sales employees earned $20,160, its office employees earned $70,840, and its delivery employees earned $3,000. The employees are to have withheld from their wages FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $12,760 of federal income taxes, $1,350 of medical insurance deductions, and $820 of union dues. No employee earned more than $7,000 in the first pay period.
Required
1. Calculate FICA Social Security taxes payable and FICA Medicare taxes payable. Prepare the journal entry to record Ravello Company’s January 8 (employee) payroll expenses and liabilities.
2. Prepare the journal entry to record Ravello’s (employer) payroll taxes resulting from the January 8 payroll. Ravello’s merit rating reduces its state unemployment tax rate to 2% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.8%.



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  • CreatedMarch 18, 2015
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