Question : 188. A company’s employer payroll tax rates 0.6% for federal unemployment : 1258072

 

188. A company’s employer payroll tax rates are 0.6% for federal unemployment taxes, 5.4% for state unemployment taxes, 6.2% for FICA social security taxes on earnings up to $117,000, and 1.45% for FICA Medicare taxes on all earnings. Compute the W-2 Wage and Tax Statement information required below for the following employees: EmployeeGross EarningsFederal Income Taxes Withheld

A. Baylor                                   $114,000                                                $17,600

C. Jasmine                                     52,000                                                    8,200

 A. BaylorC. Jasmine

W-2 Information:                                                             ________             ________

Federal Income Tax Withheld…………..                       ________             ________

Wages, Tips, Other Compensation………                       ________             ________

Social Security Tax Withheld……………                       ________             ________

Social Security Wages…………………..                       ________             ________

Medicare Tax Withheld…………………                       ________             ________

Medicare Wages…………………………                      ________              ________

 

 

 

189. The payroll records of a company provided the following data for the current weekly pay period ended March 12.  

 

Earnings

to End of

 

Federal

Medical

 

 

Previous

Gross

Income

Insurance

UnionUnited

Employees

Week

Pay

Taxes

Deduction

DuesWay

D. Hui…….

$ 5,800

$800

$120

$35

   $10$10

B. Kim…….

6,850

1,100

180

35

     1015

C. Sly……

12,900

1,440

404

35

1040

 Assume that the Social Security portion of the FICA taxes is 6.2% on the first $117,000 and the Medicare portion is 1.45% of all wages paid to each employee for this pay period. The federal and state unemployment tax rates are 0.8% and 5.4%, respectively, on the first $7,000 paid to each employee.Calculate the net pay for each employee. 

 

190. A company’s payroll information for the month of May follows:  

Administrative salaries ……………….

$4,000

Sales salaries……………………..

5,500

FICA-Social Security taxes withheld……….

589

FICA-Medicare taxes withheld…………..

138

Federal income taxes withheld…………..

1,300

Medical insurance premiums withheld………

415

Union dues withheld…………………

205

On May 31 the company issued Check No. 4625 payable to the Payroll Bank Account to pay for the May payroll. It issued payroll checks to the employees after depositing the check.(1) Prepare the journal entry to record (accrue) the employer’s payroll for May. (2) Prepare the journal entry to record payment of the May payroll. The federal and state unemployment tax rates are 0.6% and 5.4%, respectively, on the first $7,000 paid to each employee. The wages and salaries subject to these taxes were $6,000. (3) Prepare the journal entry to record the employer’s payroll taxes. 

 

 

191. Cardinal Company sells merchandise for $24,000 cash on March 31 (cost of merchandise is $12,300). The sales tax law requires Cardinal to collect 8.5% sales tax on every dollar of merchandise sold. Record the entry for the sale and its applicable sales tax. 

 

 192.  Star Recreation receives $48,000 cash in advance ticket sales for 12 home games. Record the advance ticket sales on April 30. Record the revenue earned for the first home game played on August 14.