E13-7 (L01) (Payroll Tax Entries) Green Day Hardware Company's payroll for November 2017 is summarized below....

 

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E13-7 (L01) (Payroll Tax Entries) Green Day Hardware Company's payroll for November 2017 is summarized below. Amount Subject to Payroll Taxes Unemployment Tax Payroll Factory Sales Administrative Total Wages Due $120,000 32,000 36,000 $188,000 FICA $120,000 32,000 36,000 $188,000 Federal $40,000 4,000 $44,000 State $40,000 4,000 $44,000 At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee's wages to $118,500 and 1.45% in excess of $118,500. Of the $188,000 wages subject to FICA tax, $20,000 of the sales wages is in excess of $118,500. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $16,000 for factory, $7,000 for sales, and $6,000 for administrative. Instructions (a) Prepare a schedule showing the employer's total cost of wages for November by function. (Round all computations to nearest dollar.) (b) Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer's payroll taxes. E13-7 (L01) (Payroll Tax Entries) Green Day Hardware Company's payroll for November 2017 is summarized below. Amount Subject to Payroll Taxes Unemployment Tax Payroll Factory Sales Administrative Total Wages Due $120,000 32,000 36,000 $188,000 FICA $120,000 32,000 36,000 $188,000 Federal $40,000 4,000 $44,000 State $40,000 4,000 $44,000 At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee's wages to $118,500 and 1.45% in excess of $118,500. Of the $188,000 wages subject to FICA tax, $20,000 of the sales wages is in excess of $118,500. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $16,000 for factory, $7,000 for sales, and $6,000 for administrative. Instructions (a) Prepare a schedule showing the employer's total cost of wages for November by function. (Round all computations to nearest dollar.) (b) Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer's payroll taxes.

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Green Day Hardware Company Requirement 1 Salaries and Wages FICA Taxes FUTA Taxes S... View the full answer