Problem 13-4

Below is a payroll sheet for Blue Import Company for the month of September 2017. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% FICA tax on employee and employer on a maximum of $118,500. In addition, 1.45% is charged both employer and employee for an employees wages in excess of $118,500 per employee.

Unemployment Tax
Name		Earnings to Aug. 31			September Earnings			Income Tax Withholding		FICA		State		Federal
B. D. Williams		$6,800			$800			$		$		$		$
D. Raye		6,700			700
K. Baker		7,700			1,200
F. Lopez		14,500			1,900
A. Daniels		106,600			13,200
B. Kingston		111,500			15,600
Total		$			$			$		$		$		$

Make the necessary entry to record the payment of the payroll. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit

Make the entry to record the payroll tax expenses of Blue Import Company. (Round answers to 2 decimal places, e.g. 15.25. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

Make the entry to record the payment of the payroll liabilities created. Assume that the company pays all payroll liabilities at the end of each month. (Round answers to 2 decimal places, e.g. 15.25. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

Complete the payroll sheet. (Round answers to 2 decimal places, e.g. 15.26.)