The following payroll journal entries for Oct. 15 were made by your predecessor. For FICA tax,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following payroll journal entries for Oct. 15 were made by your predecessor. For FICA tax, assume that the social security rate is 6.0% and the Medicare rate is 1.5%. The state and federal unemployment tax rates are 5.4% and 0.8%, respectively. The company offers 401k plans to employees. Review the journal entries, then answer the questions that follow. 1 2 3 4 6 8 9 10 11 12 13 14 15 16 17 DATE Oct. 15 Sales Salaries Expense Officers Salaries Expense Office Salaries Expense Factory Wages Expense Social Security Tax Payable Medicare Tax Payable Employees Federal Income Tax Payable Medical Insurance Payable Retirement Contributions Payable Salaries Payable 15 Payroll Tax Expense DESCRIPTION Social Security Tax Payable Medicare Tax Payable Federal Unemployment Tax Payable State Unemployment Tax Payable 15 Pension Expense Cash JOURNAL POST. REF. DEBIT 123,000.00 442,800.00 82,000.00 172,200.00 62,864.00 73,800.00 CREDIT 49,200.00 12,300.00 147,600.00 90,200.00 123,000.00 397,700.00 49,200.00 12,300.00 176.00 1,188.00 73,800.00 ASSETS ↓ ACCOUNTING EQUATION LIABILITIES ↑ ↑ ↑ ↑ ↑ ↑ 1 ↑ PAGE 32 ↑ ↑ EQUITY 1 1 Į Į Į ↓ ter 10 - Mastery Problems 10 11 12 13 14 15 16 17 Salaries Payable 15 Payroll Tax Expense Social Security Tax Payable Medicare Tax Payable Federal Unemployment Tax Payable State Unemployment Tax Payable 15 Pension Expense Cash 1. Determine the payroll amount subject to federal and state unemployment taxes in this payroll. $61,500 X 2. What is the total payroll for Copperfield and Company shown in these journal entries? $534,364 X 3. What is Copperfield and Company's share of FICA taxes in this payroll? $3,137 X 4. How much has Copperfield and Company contributed to employee 401k plans in this payroll? 62,864.00 $73,800✔ 73,800.00 397,700.00 49,200.00 12,300.00 176.00 1,188.00 73,800.00 In order to confirm the previous clerk's payroll calculations, you have been asked to supply the following amounts based on your review of the payroll entries. These amounts will be checked against the company records and investigated further if necessary. ↓ ↑ ↑ ↑ ↑ ↑ Points: Points: Points: ↓ Points: ↓ 0/1 0/1 0/1 1/1 Short-Term Note Payable Copperfield and Company issued a 90-day, 6.00% note for $200,000 to a creditor on account. The previous clerk entered the following journal entries to record the note on July 10, and the payment of the note at maturity. 1 2 3 4 5 DATE 1 Jul. 10 Accounts Payable Notes Payable 2 3 Notes Payable How does grading work? Accounts Payable Interest Expense DATE DESCRIPTION Oct. 8 Notes Payable Notes Payable Interest Expense JOURNAL DESCRIPTION Journalize the payment of the note at maturity as it should have been journalized. Don't forget to include the date. Assume a 360-day year. POST. REF. JOURNAL ✓ DEBIT 200,000.00 You notice that the journal entry for recording the note on July 10 is correct, but the entry for the payment of the note at maturity (including interest) did not have a date and was not correct. 212,000.00 POST. REF. CREDIT 200,000.00 DEBIT 212,000.00 200,000.00 12,000.00 Score: 24/37 CREDIT Shaded cells have feedback. 200,000.00 12,000.00 ACCOUNTING EQUATION ASSETS LIABILITIES EQUITY Į ↑ ↓ ↑ ASSETS PAGE 25 LIABILITIES ↓ ACCOUNTING EQUATION ↑ ↑ ✓ PAGE 25 EQUITY ↑ LEUT The following payroll journal entries for Oct. 15 were made by your predecessor. For FICA tax, assume that the social security rate is 6.0% and the Medicare rate is 1.5%. The state and federal unemployment tax rates are 5.4% and 0.8%, respectively. The company offers 401k plans to employees. Review the journal entries, then answer the questions that follow. 1 2 3 4 6 8 9 10 11 12 13 14 15 16 17 DATE Oct. 15 Sales Salaries Expense Officers Salaries Expense Office Salaries Expense Factory Wages Expense Social Security Tax Payable Medicare Tax Payable Employees Federal Income Tax Payable Medical Insurance Payable Retirement Contributions Payable Salaries Payable 15 Payroll Tax Expense DESCRIPTION Social Security Tax Payable Medicare Tax Payable Federal Unemployment Tax Payable State Unemployment Tax Payable 15 Pension Expense Cash JOURNAL POST. REF. DEBIT 123,000.00 442,800.00 82,000.00 172,200.00 62,864.00 73,800.00 CREDIT 49,200.00 12,300.00 147,600.00 90,200.00 123,000.00 397,700.00 49,200.00 12,300.00 176.00 1,188.00 73,800.00 ASSETS ↓ ACCOUNTING EQUATION LIABILITIES ↑ ↑ ↑ ↑ ↑ ↑ 1 ↑ PAGE 32 ↑ ↑ EQUITY 1 1 Į Į Į ↓ ter 10 - Mastery Problems 10 11 12 13 14 15 16 17 Salaries Payable 15 Payroll Tax Expense Social Security Tax Payable Medicare Tax Payable Federal Unemployment Tax Payable State Unemployment Tax Payable 15 Pension Expense Cash 1. Determine the payroll amount subject to federal and state unemployment taxes in this payroll. $61,500 X 2. What is the total payroll for Copperfield and Company shown in these journal entries? $534,364 X 3. What is Copperfield and Company's share of FICA taxes in this payroll? $3,137 X 4. How much has Copperfield and Company contributed to employee 401k plans in this payroll? 62,864.00 $73,800✔ 73,800.00 397,700.00 49,200.00 12,300.00 176.00 1,188.00 73,800.00 In order to confirm the previous clerk's payroll calculations, you have been asked to supply the following amounts based on your review of the payroll entries. These amounts will be checked against the company records and investigated further if necessary. ↓ ↑ ↑ ↑ ↑ ↑ Points: Points: Points: ↓ Points: ↓ 0/1 0/1 0/1 1/1 Short-Term Note Payable Copperfield and Company issued a 90-day, 6.00% note for $200,000 to a creditor on account. The previous clerk entered the following journal entries to record the note on July 10, and the payment of the note at maturity. 1 2 3 4 5 DATE 1 Jul. 10 Accounts Payable Notes Payable 2 3 Notes Payable How does grading work? Accounts Payable Interest Expense DATE DESCRIPTION Oct. 8 Notes Payable Notes Payable Interest Expense JOURNAL DESCRIPTION Journalize the payment of the note at maturity as it should have been journalized. Don't forget to include the date. Assume a 360-day year. POST. REF. JOURNAL ✓ DEBIT 200,000.00 You notice that the journal entry for recording the note on July 10 is correct, but the entry for the payment of the note at maturity (including interest) did not have a date and was not correct. 212,000.00 POST. REF. CREDIT 200,000.00 DEBIT 212,000.00 200,000.00 12,000.00 Score: 24/37 CREDIT Shaded cells have feedback. 200,000.00 12,000.00 ACCOUNTING EQUATION ASSETS LIABILITIES EQUITY Į ↑ ↓ ↑ ASSETS PAGE 25 LIABILITIES ↓ ACCOUNTING EQUATION ↑ ↑ ✓ PAGE 25 EQUITY ↑ LEUT
Expert Answer:
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
The following journal entry was made by your predecessor to record the annual payment on a 5%, 10-year installment note. PAGE 22 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT...
-
The following payroll journal entry was prepared by Palmdale Company from its payroll register. Which columns of the payroll register have the data come from? How do the taxable earnings columns of...
-
The following payroll journal entry was prepared by Palmdale Company from its payroll register. Which columns of the payroll register have the data come from? How do the taxable earnings columns of...
-
Contact local employers and ask for copies of their employee handbooks. If none are available, research parent companies of local employers online to see if their employee handbooks are available....
-
During the 2012 annual accounting period, Chu Corporation completed the following transactions: a. On January 1, 2012, purchased a license for $7,200 cash (estimated useful life, three years). b. On...
-
a. Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $120,000. It will have a useful life of 4 years and no salvage value . Annual revenues...
-
Question: While drunk, the driver of a subway car plows into the back of the car ahead of him, killing a passenger. It was against the rules for the driver to be drunk. Is the subway authority liable...
-
Damon Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Damon Manufacturing's operations: Current Assets as of December 31 (prior...
-
Page 149 Develop Your Skills RESEARCH CASE CPA SEN'S Jonas Tech Corporation recently acquired Innovation Plus Company. The combined firm consists of three related businesses that will serve as...
-
Managers at DeJohn Corporation are analyzing a potential investment of $2,000,000 in equipment and the processes needed to manufacture and market MyHelperBotz, a product line of robots designed to...
-
A paint supply company makes three styles of Paint Rollers, regular, deluxe and heavy. All of the types of brushes must pass through 3 machines. The different types of brushes have the following...
-
Today the spot rate is $1.15 per euro and a U.S. investor buys one million dollars of a European mutual fund at a price of 20 per share. One year later the shares have appreciated to 24. What rate of...
-
Why would stocks have different voting rights for Common Stock?
-
The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $ 8 9 0 , 0 0 0 , and it would cost another $ 2 0 , 0 0 0 to install it . The...
-
Donde lends 20,000 to Kyle today and charges a nominal interest rate of 7.5% convertible monthly. Kyle will repay the loan by level payments at the end of each month in the next 5 years. Donde will...
-
Assume a risk-free asset in the U.S. is currently yielding 4.1 percent, a Canadian risk-free asset is yielding 3.7 percent, and the current spot rate is C$1.2633 (Canadian Dollar per U.S. dollar)....
-
2 d ! Required information [The following information applies to the questions displayed below.] Year 1 total cash dividends Year 2 total cash dividends Year 3 total cash dividends Year 4 total cash...
-
In the busy port of Chennai, India, the number of containers loaded onto ships during a 15-week period is as follows: 1. Develop a linear trend equation to forecast container loadings. 2. Using the...
-
Ray and Maria Gomez have been married 3 years. They live at 1610 Quince Ave., McAllen, TX 78701. Ray works for Palm Oil Corporation and Maria works for the City of McAllen. Maria's Social Security...
-
Bill and Guilda each own 50 percent of the stock of Radiata Corporation, an S corporation. Guilda's basis in her stock is $25,000. On July 31, 2012, Bill sells his stock, with a basis of $40,000, to...
-
Scott Butterfield is self-employed as a CPA. He uses the cash method of accounting, and his Social Security number is 644-47-7833. His principal business code is 541211. Scott's CPA practice is...
-
\(38 \times 6-4+5 \times 18 \div 10\) Perform the indicated calculation.
-
\(15 \times 7+23-6 \times 40 \div 24\) Perform the indicated calculation.
-
\(2 \times 12^{3} \div 8 \times 3-4^{5}\) Perform the indicated calculation.
Study smarter with the SolutionInn App