Question;Problem 1 ? 20 PointsThe labor cost summary for the Martinez Manufacturing Company shows that wages and salaries earned (assume all earnings are fully taxable) by the employees for the period were as follows:Direct labor:Regular time $190,000Overtime 20,000 $210,000Indirect labor 25,000Administrative salaries 45,000Sales salaries 40,000Total wages and salaries $320,000For this problem, assume the following tax rates:FICA?Employer and employee, each 8%State unemployment tax?4%FUTA?1%Federal income tax withholding?10% of earningsFor each of the transactions listed below, indicate the account(s) and amount(s) to be debited and credited. Designate the accounts by the identifying letters.Debit CreditACCOUNT TRANSACTION Acct. Amt. Acct. Amt. ScoringA. Work in Process 1. Give the general journalB. Accounts Payable entry to record payroll.C. State UnemploymentTax Payable 2. Give the general journalD. Sales Salaries entry to record theE. Payroll Taxes Expense? distribution of the laborSales Salaries cost summary data forF. Payroll Taxes Expense? the period.Administrative SalariesG. PayrollH. Employees Income Tax 3. Give the general journalPayable entry to record paymentI. FUTA Tax Payable of the payrollJ. FICA Tax PayableK. Factory Overhead 4. Give the general journalL. Cash entry to record theM. Administrative Salaries employer?s tax liabilityN. Wages Payable for the payroll.
Paper#43874 | Written in 18-Jul-2015Price : $19