MSquared pays its employees monthly. Payments made by the company on October 3 1 follow. Cumulative amounts
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Question:
MSquared pays its employees monthly. Payments made by the company on October follow. Cumulative amounts for the year paid to the persons prior to the October payroll are also given.
Tori Parker, president, gross monthly salary of $; gross earnings prior to October $
Carolyn Catz, vice president, gross monthly salary of $ gross earnings paid prior to October $
Michelle Clark, independent accountant who audits the companys accounts and performs consulting services, $ gross amounts paid prior to October $
Will Wu treasurer, gross monthly salary of $ gross earnings prior to October $
Payment to Review Services for monthly services of Tom Bradley, an editorial expert, $ amount paid to Review Services prior to October $
Required:
Use an earnings ceiling of $ for social security taxes and a tax rate of percent and a tax rate of percent on all earnings for Medicare taxes. Prepare a schedule showing the following information:
Each employees cumulative earnings prior to October
Each employees gross earnings for October.
The amounts to be withheld for each payroll tax from each employees earnings; the employees income tax withholdings are Parker, $; Catz, $; Wu $
The net amount due each employee.
The total gross earnings, the total of each payroll tax deduction, and the total net amount payable to employees.
Prepare the general journal entry to record the companys payroll on October
Prepare the general journal entry to record payments to employees on October
Use an earnings ceiling of $ for social security taxes and a tax rate of percent and a tax rate of percent on all earnings for Medicare taxes. Prepare a schedule showing the following information:
Note: Round your answers to decimal places.
Employee Name, Cumulative earnings, Monthly pay, Social security, Medicare, Employee income tax withholding, Net pay
Provide a journal entry worksheet
Related Book For
College Accounting A Contemporary Approach
ISBN: 9781260780352
5th Edition
Authors: David Haddock, John Price, Michael Farina
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