Sondeno Company has gathered the following payroll data for the month of July 2010. Administrative salaries ...........................................................
Question:
Sondeno Company has gathered the following payroll data for the month of July 2010.
Administrative salaries ........................................................... $ 50,000
Sales commissions earned ...................................................... 60,000
Executive salaries ................................................................... 280,000
Assume the following rates: FICA, 7.65 percent (no employees have reached the maximum withholding for social security); federal income taxes for administrative and sales 15%, executives 25%; state income taxes, 10 percent of the federal income tax withholding; FUTA taxes, 0.6 percent; and SUTA, 5.4 percent. Assume that employees are paid at the end of each month.
Required
A. What is the net pay for Sondeno’s employees?
B. What is the total payroll-related liability for Sondeno?
C. What is the payroll- related expense for Sondeno?
D. What are the amounts to be shown on the income statement, statement of cash flows, and balance sheet?
Step by Step Answer:
Introduction to Accounting An Integrated Approach
ISBN: 978-0078136603
6th edition
Authors: Penne Ainsworth, Dan Deines