An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $120; cumulative earnings for the year prior to this week, $5,500; Social security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, .8% on the first $7,000. Prepare the journal entry to record the salaries expense. Do not include dollar signs in the entry. Please round all numerical answers to the nearest cent. For example, 711.267 would be answered as "711.27". Use the following chart of accounts to ensure that accounts names are spelled correctly. 11 12 13 14 15 17 18 19 21 22 23 24 25 26 27 28 31 32 Assets Cash Accounts receivable Allowance for doubtful accounts Supplies Prepaid insurance Land Equipment Accumulated depreciation-equipment Liabilities Accounts payable Salaries payable Notes payable Social security taxes payable Medicare taxes payable Federal withholding taxes payable SUTA payable FUTA payable Owner's Equity Retained earnings Common stock
An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $120; cumulative earnings for the year prior to this week, $5,500; Social security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, .8% on the first $7,000. Prepare the journal entry to record the salaries expense. Do not include dollar signs in the entry. Please round all numerical answers to the nearest cent. For example, 711.267 would be answered as "711.27". Use the following chart of accounts to ensure that accounts names are spelled correctly. 11 12 13 14 15 17 18 19 21 22 23 24 25 26 27 28 31 32 Assets Cash Accounts receivable Allowance for doubtful accounts Supplies Prepaid insurance Land Equipment Accumulated depreciation-equipment Liabilities Accounts payable Salaries payable Notes payable Social security taxes payable Medicare taxes payable Federal withholding taxes payable SUTA payable FUTA payable Owner's Equity Retained earnings Common stock
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter7: Employee Earnings And Deductions
Section: Chapter Questions
Problem 3PA
Related questions
Question
Expert Solution
Step 1
ANSWER:-
JOURNAL ENTRIES
Date | Description | Post Ref. | Debit($) | Credit($) |
December 31 | Salary Expense | 735.00 | ||
Federal Withholding Taxes Payable | 120.00 | |||
Social Security Taxes Payable | 44.10 | |||
Medicare Taxes Payable | 11.03 | |||
Salaries Payable | 559.87 | |||
December 31 | Payroll Tax Expense | 86.00 | ||
Social Security Taxes Payable | 44.10 | |||
Medicare Taxes Payable | 11.03 | |||
State Unemployment Comp. Taxes Payable | 24.99 | |||
Federal Unemployment Comp. Taxes Payable | 5.88 |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage