P13-3 (Payroll Tax Entries) Star Wars Company pays its office employee payroll weekly. Below is a partial list of employees and their payroll data for August. Because August is their vacation period, vacation pay is also listed.
Employee Earnings to July 31 Weekly Pay Vacation Pay to be Received in Aug
Mark Hamell $4,200 $180 -----------
Carrie Fisher $3,500 150 $300
Harrison Ford $2,700 110 $220
Alec Guinness $7,400 250 -----------
Peter Cushing $8,000 290 $580
Assume that the federal income tax withheld is 10% of wages. Union dues withheld are 2% of wages. Vacations are taken the second and third weeks of August by Fisher, Ford, and Cushing. The state unemployment tax rate is 2.5% and the federal is 0.8%, both on a $7,000 maximum. The F.I.C.A. rate is 7.65% on employee and employer on a maximum of $97,500 per employee. In addition, a 1.45% rate is charged both employer and employee for an employee’s wage in excess of $97,500.
Instructions
Make the journal entries necessary for each of the four August payrolls. The entries for the payroll and for the company’s liability are made separately. Also make the entry to record the monthly payment of accrued payroll liabilities.
Click here for the solution: Star Wars Company pays its office employee payroll weekly
Showing posts with label payroll. Show all posts
Showing posts with label payroll. Show all posts
Wednesday, November 11, 2015
Tuesday, November 10, 2015
Green Day Hardware Company's payroll for November 2008 is summarized below
E13-9 (Payroll Tax Entries) Green Day Hardware Company's payroll for November 2008 is summarized below:
Unemployment Tax
Payroll Wages Due FICA Federal State
Factory $120,000 $120,000 $40,000 $40,000
Sales 44,000 32,000 4,000 4,000
Admin 36,000 36,000 ------ ------
Total $200,000 $188,000 $44,000 $44,000
At this point in the year some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee's wages to $97,500 and 4.45% in excess of $97,500. Of the $188,000 wages subject to FICA tax, $20,000 is in excess of $97,500 related to the sales wages. Federal unemployment tax rate is .8% after credits. Income tax withheld amounts to $16,000 for factory, $7,000 for sales and $6,000 for administrative.
Instructions
a) Prepare a schedule showing the employers total cost of wages for November by function. (Round all computations to the nearest dollar)
b) Prepare journal entries to record the factory, sales, and administrative payrolls including the employers payroll taxes.
Click here for the solution: Green Day Hardware Company's payroll for November 2008 is summarized below
Unemployment Tax
Payroll Wages Due FICA Federal State
Factory $120,000 $120,000 $40,000 $40,000
Sales 44,000 32,000 4,000 4,000
Admin 36,000 36,000 ------ ------
Total $200,000 $188,000 $44,000 $44,000
At this point in the year some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee's wages to $97,500 and 4.45% in excess of $97,500. Of the $188,000 wages subject to FICA tax, $20,000 is in excess of $97,500 related to the sales wages. Federal unemployment tax rate is .8% after credits. Income tax withheld amounts to $16,000 for factory, $7,000 for sales and $6,000 for administrative.
Instructions
a) Prepare a schedule showing the employers total cost of wages for November by function. (Round all computations to the nearest dollar)
b) Prepare journal entries to record the factory, sales, and administrative payrolls including the employers payroll taxes.
Click here for the solution: Green Day Hardware Company's payroll for November 2008 is summarized below
Friday, September 25, 2015
The following data for Enrichment Industries, Inc. relate to the payroll for the week ended December 10, 2010
PR 11-5A The following data for Enrichment Industries, Inc. relate to the payroll for the week ended December 10, 2010:
Fed U.S. Accumulated
Employee Hours Worked Hourly Rate Weekly Salary Income Tax Savings Bonds Earnings Dec 3
Beilein 32 $16.00 $102.40 10 $24,576
Calhoun 32 32.00 369.60 10 84,480
Calipari 40 28.00 240.80 20 53,760
Knight 42 32.00 316.48 66,048
Odom $3,400 748.00 90 163,200
Olson 1,600 384.00 76,800
Pitino 34 18.00 91.80 29,376
Ryan 44 34.00 297.16 20 75,072
Thompson 40 26.00 218.40 35 49,920
Employees Olson and Odom are office staff, and all of the other employees are sales personnel. All sales personnel are paid 1.5 times the regular rate for all hours in excess of 40 hours per week. The social security tax rate is 6.0% on the first 100,000 of each employee's annual earnings, and Medicare tax is 1.5% of each employee's annual earnings. The next payroll check to used is No. 345.
1. Prepare a payroll register for Enrichment Industries, Inc for the week ended December 10, 2010. Use the following columns for the payroll register: Name, Total Hours, Reg Earnings, Overtime Earnings, Total Earnings, Social Security tax, Medicare Tax, Federal Income Tax, U.S. Savings Bonds, Total Deductions, Net Pay, Ck. No, Sales Salaries Expense, and Office Salaries Expense.
2. Journalize the entry to record the payroll sales for the week.
Click here for the solution: The following data for Enrichment Industries, Inc. relate to the payroll for the week ended December 10, 2010
Fed U.S. Accumulated
Employee Hours Worked Hourly Rate Weekly Salary Income Tax Savings Bonds Earnings Dec 3
Beilein 32 $16.00 $102.40 10 $24,576
Calhoun 32 32.00 369.60 10 84,480
Calipari 40 28.00 240.80 20 53,760
Knight 42 32.00 316.48 66,048
Odom $3,400 748.00 90 163,200
Olson 1,600 384.00 76,800
Pitino 34 18.00 91.80 29,376
Ryan 44 34.00 297.16 20 75,072
Thompson 40 26.00 218.40 35 49,920
Employees Olson and Odom are office staff, and all of the other employees are sales personnel. All sales personnel are paid 1.5 times the regular rate for all hours in excess of 40 hours per week. The social security tax rate is 6.0% on the first 100,000 of each employee's annual earnings, and Medicare tax is 1.5% of each employee's annual earnings. The next payroll check to used is No. 345.
1. Prepare a payroll register for Enrichment Industries, Inc for the week ended December 10, 2010. Use the following columns for the payroll register: Name, Total Hours, Reg Earnings, Overtime Earnings, Total Earnings, Social Security tax, Medicare Tax, Federal Income Tax, U.S. Savings Bonds, Total Deductions, Net Pay, Ck. No, Sales Salaries Expense, and Office Salaries Expense.
2. Journalize the entry to record the payroll sales for the week.
Click here for the solution: The following data for Enrichment Industries, Inc. relate to the payroll for the week ended December 10, 2010
Sunday, September 20, 2015
According to the accountant of Ulner Inc., its payroll taxes for the week were as follows
ACC 291 Week 3 Assignment
E10-6 According to the accountant of Ulner Inc., its payroll taxes for the week were as follows: $198.40 for FICA taxes, $19.84 for federal unemployment taxes, and $133.92 for state unemployment taxes.
Instructions
Journalize the entry to record the accrual of the payroll taxes.
Click here for the solution: According to the accountant of Ulner Inc., its payroll taxes for the week were as follows
E10-6 According to the accountant of Ulner Inc., its payroll taxes for the week were as follows: $198.40 for FICA taxes, $19.84 for federal unemployment taxes, and $133.92 for state unemployment taxes.
Instructions
Journalize the entry to record the accrual of the payroll taxes.
Click here for the solution: According to the accountant of Ulner Inc., its payroll taxes for the week were as follows
Wednesday, September 2, 2015
You are auditing payroll for the Goodview Manufacturing Company for the year ended September 30, 2009
Auditing P 8-32 You are auditing payroll for the Goodview Manufacturing company for the year ended September 30, 2009. Included next are amounts from the clients trial balance, along with comparative audited information for the prior year.
AND SO ON
You have obtained the following information to help you perform preliminary analytical procedures for the payroll account balances.
1. There has been a significant increase in the demand for Goodview's products. The increase in sales was due to both an increase in the average selling price of 10% and an increase in units sold that resulted from the increased demand and an increased marketing effort.
2. Even though sales volume increased there was no addition of executives, factory supervisors, or office personnel.
3. All employees including executives, but excluding commission salespeople, received a 3% salary increase starting October 1, 2008. Commission salespeople receive their increased compensation through the increase in sales.
4. The increased number of factory hourly employees was accomplished by recalling employees that had been laid off. They receive the same wage rate as existing employees. Goodview does not permit overtime.
5. Commission salespeople receive a 6% commission on all sales on which a commission is given. Approximately 78% of sales earn sales commission. The other 25% are "call-ins", for which no commission is given. Commissions are paid in the month following the month they are earned.
Required:
a. Use the final balances for the prior year and the information in items 1 thru 5 to develop an expected value for each account included on the preceding page, except sales.
b. Calculate the difference between your expectation and the client's recorded amount a percentage using the formula (expected value-recorded amount)/expected value.
Click here for the solution: You are auditing payroll for the Goodview Manufacturing Company for the year ended September 30, 2009
AND SO ON
You have obtained the following information to help you perform preliminary analytical procedures for the payroll account balances.
1. There has been a significant increase in the demand for Goodview's products. The increase in sales was due to both an increase in the average selling price of 10% and an increase in units sold that resulted from the increased demand and an increased marketing effort.
2. Even though sales volume increased there was no addition of executives, factory supervisors, or office personnel.
3. All employees including executives, but excluding commission salespeople, received a 3% salary increase starting October 1, 2008. Commission salespeople receive their increased compensation through the increase in sales.
4. The increased number of factory hourly employees was accomplished by recalling employees that had been laid off. They receive the same wage rate as existing employees. Goodview does not permit overtime.
5. Commission salespeople receive a 6% commission on all sales on which a commission is given. Approximately 78% of sales earn sales commission. The other 25% are "call-ins", for which no commission is given. Commissions are paid in the month following the month they are earned.
Required:
a. Use the final balances for the prior year and the information in items 1 thru 5 to develop an expected value for each account included on the preceding page, except sales.
b. Calculate the difference between your expectation and the client's recorded amount a percentage using the formula (expected value-recorded amount)/expected value.
Click here for the solution: You are auditing payroll for the Goodview Manufacturing Company for the year ended September 30, 2009
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