The payroll summary for EVB Inc. for the period August 3 - 10 is as follows: Factory
Question:
The payroll summary for EVB Inc. for the period August 3 - 10 is as follows:
Factory Employees | Sales and Admin. Employees | Total | |
Gross Earnings | $80,000 | $25,000 | $105,000 |
Withholding and deductions: | |||
FICA | 6,400 | 2,000 | 8,400 |
Income taxes | 10,600 | 5,000 | 15,600 |
Union dues | 400 | - | 400 |
Total | 17,400 | 7,000 | 24,400 |
Net earnings | $62,600 | $18,000 | $80,600 |
The entry to record payroll would be:
a. | Payroll 105,000 FICA Payable 8,400 Employees Income Tax Payable 15,600 Union Dues Payable 400 Wages Payable 80,600 |
b. | Work in Process 80,000 Factory Overhead 25,000 Payroll 105,000 |
c. | Factory Overhead 80,000 Selling and Administrative Expense 25,000 FICA Payable 8,400 Employees Income Tax Payable 15,600 Union Dues Payable 400 Wages Payable 80,600 |
d. | Payroll 105,000 Wages Payable 105,000 |
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill