Assignment: ACT 1963 Unit 2 Homework Question Note: For this edition, the 2014 f
ID: 2473220 • Letter: A
Question
Assignment: ACT 1963 Unit 2 Homework
Question
Note: For this edition, the 2014 federal income tax tables, FICA rates, OASDI rate of 6.2% on wages up to $117,000 and the employee and employer HI rate of 1.45% on all wages was used.
Unless instructed otherwise, click here to calculate hourly rate and overtime rates.
Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,800 each week.
Record the payroll entry and payroll tax entry for the pay of the week ended June 5 (his year-to-date pay is $37,800).
If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
Additional tax information includes: FICA tax—OASDI 6.2% on first $117,000 FICA tax—HI 1.45% on total pay Federal income tax $234.00 per pay State income tax 22% of the federal income tax withholding Federal unemployment tax 0.6% on first $7,000 State unemployment tax 0.05% on first $14,000 Additional payroll deductions include: 401(k) plan 3% per pay Child support garnishment $110 per pay Health insurance premium $92 per payExplanation / Answer
Date
Account Head
Debit
Credit
Payment of wages
Wages expenses
1800
Payroll tax expenses
1576.8
Cash
1800
FICA tax OASDI payable
111.6
FICA tax HI payable
26.1
Federal Income tax payable
1170
State income tax payable
257.4
Federal Unemployment tax payable
10.8
State unemployment tax
0.9
Payroll taxes
FICA tax OASDI payable
111.6
FICA tax HI payable
26.1
Federal Income tax payable
1170
State income tax payable
257.4
Federal Unemployment tax payable
10.8
State unemployment tax
0.9
Cash
1576.8
Date
Account Head
Debit
Credit
Payment of wages
Wages expenses
1800
Payroll tax expenses
1576.8
Cash
1800
FICA tax OASDI payable
111.6
FICA tax HI payable
26.1
Federal Income tax payable
1170
State income tax payable
257.4
Federal Unemployment tax payable
10.8
State unemployment tax
0.9
Payroll taxes
FICA tax OASDI payable
111.6
FICA tax HI payable
26.1
Federal Income tax payable
1170
State income tax payable
257.4
Federal Unemployment tax payable
10.8
State unemployment tax
0.9
Cash
1576.8
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