FOR EVERY & IN LIFE ACCTI10- Accounting PrinciplesI Payroll Functions Assignment
ID: 2411435 • Letter: F
Question
FOR EVERY & IN LIFE ACCTI10- Accounting PrinciplesI Payroll Functions Assignment This Assignment is worth 10% of your grade. Deadline Due by the end of Week 7 at 11.59 pm, ET Outcomes Completing this Assessment will help you to moet the following Course Outcomes Solve a variety of payroll functions, including deductions, register, and earning records using Interpret and apply Generally Accepted Accounting Principles (GAAr) to analyze. Quantitative and Scientific Reasoning - Follow established methods of inquiry and Microsoft Excel. report financial information for a service business using computerization. Institutional Outcomes mathematical reasoning to form conclusions and make decisions Directions Question# 1 - Payroll liabilities: Win-Win company's first weekly pay period of the year ends on January 8. On that date, the column totals in its payroll register show that sales employees earned $30,000 and office employees earned $20,000 in salaries. The employees are to have withheld from their salaries FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $9,000 of federal income taxes. $2,000 of medical insurance deductions, and $1,000 of pension contributions. No employee earned more than $7,000 in the first pay period. Required: Part 1a Compute PICA -Social Securiy taxe payable and PICA-Medicare taves Part 1b. Prepare the journal entry to record Win-Win's January 8 (employee) payroll Part 2. Prepare the journal entry to record Win-Win's (employer) payroll taxes resulting payable. expenses and liabilities. (Round amounts to cents.) from the January 8 payroll.Explanation / Answer
As per policy, only one question is allowed to answer at a time, so solving Q1 :
Question 1) 1a. FICA - social security tax payable = ($30000 + 20000)*6.2%=3100 FICA - medicare taxes payable = ($30000 + 20000)*1.45%=725 1b. Journal Entries: 8-Jan Salary Expense 50000 FICA - social security tax payable 3100 FICA - medicare taxes payable 725 Federal tax withheld 9000 Medical Insurance 2000 Pension contribution 1000 Salary Payable 34175 (being salaries and deductions withheld and net drawn out) Part 2) 8-Jan Payroll tax expenses 5825 FICA - social security tax payable 3100 FICA - medicare taxes payable 725 State unemployment tax payable 1700 50000*3.4%=1700 federal unemployment tax payable 300 50000*0.6%=300 (being employer tax expenses may payable)Related Questions
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