Hernandez Builders has a gross payroll for January amounting to $560,000. The following amounts have been...
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Hernandez Builders has a gross payroll for January amounting to $560,000. The following amounts have been withheld: Federal income taxes $71,000 Social Security 34,720 Medicare 8,120 Charitable contributions 1% of gross pay Union dues 2% of gross pay Also, the federal unemployment tax rate is 6.2%, and applies to all but $56,000 of the gross payroll. Required: 1. What is the amount of net pay recorded by Hernandez? 2. Prepare the journal entries to record the payroll. If an amount box does not require an entry, leave it blank. (Record employer payroll taxes) Hernandez Builders has a gross payroll for January amounting to $560,000. The following amounts have been withheld: Federal income taxes $71,000 Social Security 34,720 Medicare 8,120 Charitable contributions 1% of gross pay Union dues 2% of gross pay Also, the federal unemployment tax rate is 6.2%, and applies to all but $56,000 of the gross payroll. Required: 1. What is the amount of net pay recorded by Hernandez? 2. Prepare the journal entries to record the payroll. If an amount box does not require an entry, leave it blank. (Record employer payroll taxes)
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1 Wages expense 560000 Less Deductions Federal Income taxes withholding payable 7... View the full answer
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
Posted Date:
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