Below is a payroll sheet for Oriole Import Company for the month of September 20

Question

Below is a payroll sheet for Oriole Import Company for the month of September 2017. The company is allowed a 196 unemployment compensation rate by the state, the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% FICA tax on employee and employer on a maximum of $118,500. In addition, 1.45% is charged both employer and employee for an employee's wages in excess of $118,500 per employee. Your answer is partially correct. Try again Complete the payroll sheet. (Round answers to 2 decimal places, e.g. 15.26.) Unemployment Tax Earnings to Aug. 31 September Earning:s Income Tax Withholding Name FICA State Federal B. D. Williams $6,900 $800 1080 D. Raye 6,500 700 1,000 190 1,800 1500 13,200 1500 16,800 K. Baker 7,500 F. Lopez 14,800 ?? A. Daniels 108,500 B. Kingston 113,000 Total Make the necessary entry to record the payment of the payroll. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit alaries and Wages Expens ithholding Taxes Payable ICA Taxes Payabl

Explanation / Answer

Part (a) Name Earnig to Aug.31 Sep. Earnings Income Tax withholdings FICA State U.C. Federal U.c. B.D. Williams $                  6,900 $                800 $                   80 $         61.20 $           1.00 $              0.80 D. Raye $                  6,500 $                700 $                   70 $         53.55 $           5.00 $              4.00 K. Baker $                  7,500 $            1,000 $                 100 $         76.50 $                -   $                  -   F. Lopez $               14,800 $            1,800 $                 180 $      137.70 $                -   $                  -   A.Daniels $             108,500 $          13,200 $             1,320 $      666.40 $                -   $                  -   B. Kingston $             113,000 $          16,800 $             1,680 $      504.85 $                -   $                  -   Total $             257,200 $          34,300 $             3,430 $         1,500 $                 6 $                    5 Caculation of FICA B.D. Williams 800*7.65% $            61.20 D. Raye 700*7.65% $            53.55 K. Baker 1100*7.65% $            84.15 F. Lopez 1900*7.65% $          145.35 A. Daniels [((118500-108500)*6.2%) + ((108500+13200-118500)*1.45%)] $          666.40 B. Kingston [((118500-113000)*6.2%) + ((113000+16800-118500)*1.45%)] $          504.85 Salaries & Wages expenses Payable $           34,300                             Withholding Tax Payable $         3,430                             FICA Tax payable $         1,500                             Cash $      29,370 To record the payment of payroll $           34,300 $      34,300

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