okmarks Iools Help Benefit Centes-PRE Home x Benefit Certer. PRE Home x New Tab

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okmarks Iools Help Benefit Centes-PRE Home x Benefit Certer. PRE Home x New Tab oa ht Search rk Ch 10-11 Help Seve Problem 10.4A Computing gross earnings, determining deductions and net amount due, journalizing payroll transactions. LO 10-2, 10-3, 10-4, 10-5, 10-6, 10-7 Nashville Publishing Company pays its employees monthly Payments made by the company on October 31, 2019, follow. Cumulative amounts paid to the persons named prior to October 31 are also given. 1. Paul Parker, president, gross monthly salary of $19,100, gross earmings prior to October 3t, $170,400 2. Carolyn Wells, vice president, gross monthly salary of $15,300, gross earnings paid prior to October 31, $151,400 3. Michele Clark, independent accountant who audits the company's accounts and performs cons amounts paid prior to October 31, $43,600 4. James Wu, treasurer, gross monthly salary of $4,700. 5. Payment to Editorial Publishing Services for monthly services of Betty Jo Bradley an editorial expert $4700, amount paid to gross earnings prior to October 31, $51500 Editorial Publishing Services prior to October 31, 2019, $32.800 Required: 1. Use an earnings celing of $122,700 for social security taxes and a tax rate of 6 2 percent and a tax rate of 1.45 percent on all earnings for Medicare taxes. Prepare a schedule showing the following information a. Each employee's cumulative earnings prior to October 31 b. Each employee's gross earnings for October c. The amounts to be withheld for each payroll tax from each employee's earnings; the employee's income tax withholdings are Prey 2 of 4 Next F10 F6 FS 96 5

Explanation / Answer

Employee Name Cumulative Earnings Monthly Pay Social Security - 6.2% Medicare - 1.45% Employee Income Tax Withholding Net pay Paul Parker $       170,400          19,100                -   276.95               5,008    13,815.05 Carolyn Wells $       151,400          15,300                -   221.85               4,303    10,775.15 James Wu $          51,500            4,700      291.40 68.15               1,079      3,261.45 Totals $       373,300          39,100      291.40            566.95       10,390.00    27,851.65 General Journal Date Description Debit Credit Oct 31, 2019 Salaries Expense $ 39,100.00 Social Security Tax Payable $         291.40 Medicare Tax Payable $         566.95 Employee Income Tax Payable $   10,390.00 Salaries Payable $   27,851.65 Oct 31, 2019 Salaries Payable $ 27,851.65 Cash $   27,851.65

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