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Title: Salary Expense and Payroll Tax Expense Ergo Company has one employee who is paid a salary of $8,500 per month. Payroll information for the first month of the year is: Federal and state income tax withheld: $1,275 FICA (social security and Medicare): 7.65% Federal unemployment (FUTA and SUTA) tax rate (on the 1st $7,000 of wages): 6.2% Insurance Premiums (paid by Employees): $400 Insurance Premiums (paid by Employer): $600 Part I: Prepare Ergo's journal entry to record the first month's salary expense and employee withholdings. Payroll tax expense will be recorded in part 2. Date Account Name Debit Credit Part 2: Prepare Ergo's journal entry to record employer payroll taxes for the first month's payroll. Date Account Name Debit Credit Part 3: Prepare Ergo's journal entry to record fringe benefits for the first month's payroll. Date Account Name Debit Credit
Aarya B.
Carla Vista Company has the following data for the weekly payroll ending January 31. Hours Employee M T W T F S Hourly Rate Federal Income Tax Withholding Health Insurance L. Helton 8 8 10 8 10 3 $14 $34 $10 R. Kenseth 8 8 8 8 8 3 12 37 25 D. Tavaras 9 12 8 8 9 0 13 58 25 Employees are paid 1½ times the regular hourly rate for all hours worked in excess of 40 hours per week. FICA taxes are 7.65% (the 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of 1.45% on all salaries and wages). Carla Vista Company is subject to 5.4% state unemployment taxes and 0.6% federal unemployment taxes on the first $7,000 of gross earnings. Prepare the journal entry to record Carla Vista's payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 15.25.) Date Account Titles and Explanation Debit Credit Jan. 31 Payroll Tax Expense 256.35 FICA Taxes Payable 116.44 FICA Taxes Payable 27.23 State Unemployment Taxes Payable 101.41
Akash M.
Payroll Accounting and Discussion of Labor Costs Blitzen Marketing Research paid its weekly and monthly payroll on January 31. The following information is available about the payroll: Item Amount Monthly salaries $237,480 Hourly wages $585,000 FICA: Social Security (both employee and employer) 6.20% Medicare (both employee and employer) 1.45% Withholding for federal income taxes $108,500 Federal unemployment taxes $1,200 State unemployment taxes $4,000 Blitzen will pay both the employer's taxes and the taxes withheld on April 15. Required: 1. Prepare the journal entries to record the payroll payment and the incurrence of the associated expenses and liabilities. If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest penny. 2. What amount does Blitzen pay in excess of gross pay as a result of taxes? (Note: Provide both an absolute dollar amount and as a percentage of gross pay, rounding to two decimal places.) 4. Conceptual Connection: If another employee can be hired for $60,000 per year, what would be the total cost of this employee to Blitzen? Do not round intermediate calculations and round your final answer to two decimal places.
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Horngren’s Cost Accounting
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