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payroll accounting problems chapter 7




Question;1. Harriet Pandel, an employer, is subject to FICA taxes but exempt;from FUTA and SUTA taxes. During last quarter of the year, her employees earned;monthly wages of $16,900, all of which is taxable. The amount of federal income taxes withheld each month is;$1,698. Journalize the payment of wages;and record the payroll tax on November 29.;Date;JOURNAL ENTRY;DEBIT;CREDIT;2.;Prior to posting the November 29 payroll transaction, FICA Taxes;Payable-OASDI, FICA Taxes Payable-HI and Employees FIT Payable had zero;balances. Pandel must pay FICA taxes and income taxes withheld on the November;29 payroll. Journalize the electronic;transfer of the payroll taxes on December 16.;Date;JOURNAL ENTRY;DEBIT;CREDIT;3. The employees of Carson Bakery Company earned;wages of $7,780 during January. The;total amount is taxable under FICA, FUTA, and SUTA. The state contribution rate for the company;is 4.3%. Carson Bakery is responsible for SUTA and has always paid timely. The;amount withheld for federal income taxes is $998. Journalize the payment of monthly wages, and;record the payroll taxes.;Date;JOURNAL ENTRY;DEBIT;CREDIT;4. Purnell, Inc. has;a semimonthly payroll of $53,900 on September 13. The total payroll is taxable;under FICA Taxes-HI: $50,400 is taxable under FICA Taxes- OASDI, and $7,300 is;taxable under FUTA and SUTA. The state;contribution rate for the company is 3.1%. Purnell is responsible for SUTA and;has always paid timely. The amount withheld for federal income taxes is $6,995.;The amount withheld for state income taxes is $1,010.;a. Journalize the payment of the wages, and;record the payroll taxes on September 13.;Date;JOURNAL ENTRY;DEBIT;CREDIT;5.;On December 31, 2013, Santucci Company has a balance of $619.24 in the;FUTA taxes payable account. This represents the employer?s liability for the;fourth quarter taxes. Journalize the entry Santucci should make in January 2014;to record the last transfer payment of FUTA taxes for 2013.;Date;JOURNAL ENTRY;DEBIT;CREDIT;6.;On December 31, 2012, Sanchez Company needed to record its accrued wages;for year-end. December 31 is on;Wednesday. The company operates on a five-day workweek, the prior week?s gross;pay (December 26 payday) was $29,870, and the net pay was $19,995. Journalize;the December 31 entry.;Date;JOURNAL ENTRY;DEBIT;CREDIT


Paper#43479 | Written in 18-Jul-2015

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