1-a. Calculate the current ratio for ACME Corporation and Wayne Enterprises T-Mo

Question

1-a. Calculate the current ratio for ACME Corporation and Wayne Enterprises T-Mobile 11:05 PM ezto.mheducation.com Award 3.30 out af to.00 poins You dlid not nece Problem 8-4A Record payroll (Lo8-3) Vacation Destinations offers its employees the option of contributing up to 7% of their salaries to a voluntary retirement plan, with the employer matching their contribution. The company also pays 100% of medical and life insurance premiums. Assume that no employee's cumulative wages exceed the relevant wage bases. Payroll information for the first biweekly payroll period ending February 14 is listed below. 620% Required: 1. Record the employee salary expense, withholdings, and salaries payable. 2. Record the employer-provided fringe benefits. 3. Record the employer payroll taxes. Record the necessary entry for the scenarios given above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 114,750 payrell (Lo-

Explanation / Answer

1. Journal entry to record employee salary expense, withholdings and salaries payable 14-Feb Salaries Expenses $1,350,000        Income tax payable $337,500        FICA tax withholdings $103,275        Accounts payable (retirement plan) $56,700        Salaries payable $852,525 2. Journal Entry to record the employer provided fringe benefits 14-Feb Salaries Expenses $90,450        Accounts payable (retirement plan) $56,700        Accounts payable (Medical Insurance) $28,350       Accounts payable (Life Insurance) $5,400 3. Journal entry to record employer payroll taxes 14-Feb Payroll Taxes payable $186,975       FICA tax payable $103,275       Unemployment tax payable $83,700 FICA tax payable = $1350000 x 7.65% = $103275 Unemployment tax payable = $10350000 x 6.20% = $83700 (Social security tax rate + medicare tax rate = FICA tax rate) (6.20% + 1.45% = 7.65%)

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