The Patel Company has a gross payroll of $8 000 per day Withholdings for PAYG taxes...
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The Patel Company has a gross payroll of $8 000 per day Withholdings for PAYG taxes are $2400 per day. There are no other deductions from employees earnings. The firm works five days per week, Monday to Friday inclusive. The payroll period covers Thursday to Wednesday inclusive and the payroll for the wook is paid on the following Friday Gross payroll consists of $4800 direct labour, $1600 indirect factory labour, $1120 selling expenses and $480 general and administrative expenses each day. The following calendar should be used to answer the questions: Sun 7 14 21 28 Mon 1 8 15 22 29 Tue 2 9 16 23 30 September Wed 3 10 11 17 18 25 24 Thu 4 Fri 5 12 19 26 Sat 6 13 20 27 (a) What is the total amount to be credited to Accrued Payroll in respect of September earnings? (b) If balance day adjustments are performed at the end of each month, what would be the balance in Accrued Payroll account at the close of business on September 30? (c) Suppose that a single journal entry is made on the last day of each month to record the distribution of total labour costs for the month, but that entries are made each Friday to record payment of wages and withholdings. Also, PAYG taxes withheld are remitted to the Taxation Department at the end of each month (0) Show the weekly journal entry (n) Construct the necessary ledger accounts to show all entries in respect of labour costs during the month of September. The Patel Company has a gross payroll of $8 000 per day Withholdings for PAYG taxes are $2400 per day. There are no other deductions from employees earnings. The firm works five days per week, Monday to Friday inclusive. The payroll period covers Thursday to Wednesday inclusive and the payroll for the wook is paid on the following Friday Gross payroll consists of $4800 direct labour, $1600 indirect factory labour, $1120 selling expenses and $480 general and administrative expenses each day. The following calendar should be used to answer the questions: Sun 7 14 21 28 Mon 1 8 15 22 29 Tue 2 9 16 23 30 September Wed 3 10 11 17 18 25 24 Thu 4 Fri 5 12 19 26 Sat 6 13 20 27 (a) What is the total amount to be credited to Accrued Payroll in respect of September earnings? (b) If balance day adjustments are performed at the end of each month, what would be the balance in Accrued Payroll account at the close of business on September 30? (c) Suppose that a single journal entry is made on the last day of each month to record the distribution of total labour costs for the month, but that entries are made each Friday to record payment of wages and withholdings. Also, PAYG taxes withheld are remitted to the Taxation Department at the end of each month (0) Show the weekly journal entry (n) Construct the necessary ledger accounts to show all entries in respect of labour costs during the month of September.
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a The total amount to be credited to Accrued Payroll in respect of September earnings can be calculated by adding up the gross payroll for the days wo... View the full answer
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-0324787351
1st Edition
Authors: Rich Jones, Mowen, Hansen, Heitger
Posted Date:
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