PROBLEM #3 ACME pays salaries monthly on the last day of the month. The following information...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
PROBLEM #3 ACME pays salaries monthly on the last day of the month. The following information is available from Electronics for the month ended December 31, Year 1. Administrative salaries $ 77,000 Sales salaries Office salaries 67,000 49,000 Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries. Duke reached $110,000 before September. His salary in December amounted to $11,000 and is included in the $77,000. No one else will reach the $110,000 amount for the year. None of the employee salaries are subject to unemployment tax in December. Assume the Medicare tax rate is 1.5% of total salaries. Other amounts withheld from salaries in December were as follows: Federal income tax State income tax $18,000 6,400 Employee savings plan 3,200 Required a. Prepare the journal entry to record the payment of payroll on December 31, Year 1. b. Prepare the journal entry to record the payroll tax expense for Electronics Service Company for December Year 1. PROBLEM #3 ACME pays salaries monthly on the last day of the month. The following information is available from Electronics for the month ended December 31, Year 1. Administrative salaries $ 77,000 Sales salaries Office salaries 67,000 49,000 Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries. Duke reached $110,000 before September. His salary in December amounted to $11,000 and is included in the $77,000. No one else will reach the $110,000 amount for the year. None of the employee salaries are subject to unemployment tax in December. Assume the Medicare tax rate is 1.5% of total salaries. Other amounts withheld from salaries in December were as follows: Federal income tax State income tax $18,000 6,400 Employee savings plan 3,200 Required a. Prepare the journal entry to record the payment of payroll on December 31, Year 1. b. Prepare the journal entry to record the payroll tax expense for Electronics Service Company for December Year 1.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Which of the following procedures most likely represents an internal control designed to reduce the risk of errors in the billing process? 1. Requiring customers that purchase on account to be...
-
Using the analytical framework illustrated in the chapter, indicate the effect of each of the three independent sets of transactions described next. (1) a. January 15, 2009: Purchased marketable...
-
The bond equivalent yield of a 91-day T-bill is 5 percent. What is the price of the bill for a $ 10,000 face value?
-
Do you believe that rules-based accounting leads to unethical managerial behavior? If so, why? Do you think that rules-based GAAP allows businesses to design their financial reporting so as to stay...
-
Your company has earnings per share of $4. It has 1 million shares outstanding, each of which has a price of $40. You are thinking of buying TargetCo, which has earnings per share of $2, 1 million...
-
Please do the following Make an outline for a research paper on income inequality as well as typing out the paper
-
You are monitoring a filling process that has an overall average of 505 cc. The average range is 12 cc. If you use a sample size of 6, what are the upper and lower control limits for the x-bar chart?...
-
What is the sampling unit when applying PPS? Define tainting. Under what conditions may PPS be applied?
-
When a sample produces unacceptable results, what are the auditors alternative means of responding to that sampling evidence?
-
If an auditor were to apply discovery sampling and find two compliance deviations, what would be the conclusion drawn from the sample?
-
What is meant by a Bayesian approach?
-
How does the high-low method differ from trend analysis?
-
Question 5 The following planned results are available for a company with a single product: Sales units Sales revenue Variable costs Fixed costs The margin of safety (sales units) is A. 100,000 units...
-
In order to get an idea on current buying trends, a real estate agent collects data on 10 recent house sales in the area. Specifically, she notes the number of bedrooms in each house as follows: a....
-
Figure 1-2 shows that organizational culture and the design of an AIS influence one another. What does this imply about the degree to which an innovative system I developed by one company can be...
-
One interesting property of digital assets is that they can be reproduced and dis tributed via the Internet at very little cost. What are some of the implications of having a product with a marginal...
-
Figure 1-2 shows that developments in IT affect both an organizations strategy and the design of its AIS. How can a company determine whether it is spending too much, too little, or just enough on...
Study smarter with the SolutionInn App