Logan White is general manager of Moonwalk Salons. During 2024, White worked for the company all...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Logan White is general manager of Moonwalk Salons. During 2024, White worked for the company all year at a $12,900 monthly salary. He also earned a year-end bonus equal to 5% of his annual salary. White's federal income tax withheld during 2024 was $1,548 per month, plus $774 on his bonus check. State income tax withheld came to $160 per month, plus $110 on the bonus. FICA tax was withheld on the annual earnings. White authorized the following payroll deductions: Charity Fund contribution of 1% of total earnings and life insurance of $50 per month. Moonwalk incurred payroll tax expense on White for FICA tax. The company also paid state unemployment tax and federal unemployment tax. (Click the icon to view payroll tax rate information.) Read the requirements. Requirement 1. Compute White's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar. Begin by computing White's gross pay for the year. (Round all amounts to the nearest dollar.) Gross pay: More info Bonus and net pay for the year. (Round all amounts to the nearest dollar.) Employee income tax Medicare tax OASDI tax Salary Net (take-home) pay Requirement 2. Compute Moonwalk's total 2024 payroll tax expense for White. (Round all amounts to the nearest dollar.) Employer Payroll Taxes: Total Employer Payroll Tax Total Payroll Expense For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. OASDI: 6.2% on first $132,900 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. Requirements 1. Compute White's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar. 2. Compute Moonwalk's total 2024 payroll tax expense for White. 3. Make the journal entry to record Moonwalk's expense for White's total earnings for the year, his payroll deductions, and net pay. Debit Salaries Expense and Bonus Expense as appropriate. Credit liability accounts for the payroll deductions and Cash for net pay. An explanation is not required. 4. Make the journal entry to record the accrual of Moonwalk's payroll tax expense for White's total earnings. 5. Make the journal entry for the payment of the payroll withholdings and taxes. Print Done Logan White is general manager of Moonwalk Salons. During 2024, White worked for the company all year at a $12,900 monthly salary. He also earned a year-end bonus equal to 5% of his annual salary. White's federal income tax withheld during 2024 was $1,548 per month, plus $774 on his bonus check. State income tax withheld came to $160 per month, plus $110 on the bonus. FICA tax was withheld on the annual earnings. White authorized the following payroll deductions: Charity Fund contribution of 1% of total earnings and life insurance of $50 per month. Moonwalk incurred payroll tax expense on White for FICA tax. The company also paid state unemployment tax and federal unemployment tax. (Click the icon to view payroll tax rate information.) Read the requirements. Requirement 1. Compute White's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar. Begin by computing White's gross pay for the year. (Round all amounts to the nearest dollar.) Gross pay: More info Bonus and net pay for the year. (Round all amounts to the nearest dollar.) Employee income tax Medicare tax OASDI tax Salary Net (take-home) pay Requirement 2. Compute Moonwalk's total 2024 payroll tax expense for White. (Round all amounts to the nearest dollar.) Employer Payroll Taxes: Total Employer Payroll Tax Total Payroll Expense For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. OASDI: 6.2% on first $132,900 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. Requirements 1. Compute White's gross pay, payroll deductions, and net pay for the full year 2024. Round all amounts to the nearest dollar. 2. Compute Moonwalk's total 2024 payroll tax expense for White. 3. Make the journal entry to record Moonwalk's expense for White's total earnings for the year, his payroll deductions, and net pay. Debit Salaries Expense and Bonus Expense as appropriate. Credit liability accounts for the payroll deductions and Cash for net pay. An explanation is not required. 4. Make the journal entry to record the accrual of Moonwalk's payroll tax expense for White's total earnings. 5. Make the journal entry for the payment of the payroll withholdings and taxes. Print Done
Expert Answer:
Related Book For
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
Students also viewed these accounting questions
-
(b) Bobcat Company, U.S.-based manufacturer of industrial equipment, just purchased a Korean company that produces plastic nuts and bolts for heavy equipment. The purchase price was Won8,000 million....
-
Three hats each contain ten coins. Hat 1 contains two gold coins, five silver coins and three copper coins. Hat 2 contains four gold coins and six silver coins. Hat 3 contains three gold coins and...
-
A producer of hydroxylamine (HA) has a warehouse containing 12,060 kg of HA, which can decompose explosively under certain conditions (assume 2% efficiency). An experimentally measured value for the...
-
Which of the following expressions correctly returns an integer that represents the month of a Local Date object named hireDate? a. GetMonth(hireDate) b. GetMonthValue(hireDate) c....
-
With the increase in the mobility of the population in the United States and with the increase in home-based employment, there is an inclination to assume that the personal income in the United...
-
1. Jesse wants me to recommend a vendor who offers an ERP strategy. I need to review the SAP and Oracle Web sites, and at least two others that offer ERP solutions, and reply to her with the results...
-
Comment on the following statement: Competition is generally viewed by economists as a good thing, yet microlenders often disagree even those who do not aim to make profits.
-
A vertical aerial photograph reveals a tall building. The foot of one corner of the building has (x, y) coordinates (30.5, 62.0) (both measured in mm from the lower left-hand corner of the negative),...
-
An investment services company experienced dramatic growth in the last two decades. The following models for the company's revenue R and expenses or costs C (both in millions of dollars) an functions...
-
Larry's Moving Company sold a delivery truck for $8,000 cash on January 1st. The truck had an original cost of $25,000 and accumulated depreciation on the date of sale of $15,000. What journal entry...
-
In a small town in Texas just outside of Austin is Darcys Restaurant. Darcy left her corporate job as an operations manager 10 years ago to fulfill a lifelong dream of opening a restaurant based on...
-
_____ is a collective work stoppage by members of a union that is intended to put pressure on an employer.
-
How is a compensating balance reported in the financial statements?
-
Why is the accounting system of a business an information system?
-
The initial step in the process of developing an accounting system is called: A. analysis B. design C. implementation D. feedback
-
What are the quality awards? Explicate the various criteria followed in Malcolm Baldrige National Quality Award?
-
Provide a draft/outline of legal research involving an indigenous Canadian woman charged with assault causing bodily harm under (Sec 267b) of the Criminal Code, where the crown wants a 12-month jail...
-
How can a profitable business fail? a Because it can't pay its bills b Because it has more current liabilities than current assets c Because it has a bank overdraft d Because it has too much cash
-
When adjusting an operating profit to calculate the 'cash flows from operating activities', an increase in inventories over the financial period would be: a Added to operating profit b Ignored c...
-
Cash has been described as: a The lifebuoy of the business b The lifeboat of the business c The lifeline of the business d The lifeblood of the business
Study smarter with the SolutionInn App