On january 8 the end of the first weekly pay period of the
Course:- Accounting Basics
Reference No.:- EM13601504

Assignment Help
Assignment Help >> Accounting Basics

On January 8, the end of the first weekly pay period of the year, Royal Company's payroll register showed that its employees earned $11,380 of office salaries and $32,920 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $6,340 of federal income taxes, $670 of medical insurance deductions, and $420 of union dues. No employee earned more than $7,000 in this first period.

1.Calculate FICA Social Security taxes payable and FICA Medicare taxes payable. Prepare the journal entry to record Royal Company's January 8 payroll expenses and liabilities.

2.Prepare the journal entry to record Royal's (employer) payroll taxes resulting from the January 8 payroll. Royal's merit rating reduces its state unemployment tax rate to 4% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.8%.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Determine the cost of the ending finished goods of each of the products as at 30 Nov 2015 using the physical method and determine the cost of the ending finished goods of each
According to the textbook, the goal of financial reporting is to report financial information that is transparent and complete and truthfully report the financial performanc
At the start of february pete's had salaries payable outstanding of $17,000. on february 4th,pete sent out paychecks to its employees valued at $20,000. prepare the journal
1- Explain the difference between Active Portfolio Management and Passive Management. 2- Briefly describe the four components of a business cycle.
The Boa Co. has the following accounts in its ledger: Cash, Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Capital Stock; Retained Earnings; Dividends; F
Assuming the computer has an eleven-year life and will have no salvage value at the expiration of the lease, what was the original cost of the copier to John?
Why would you select the percentage of sales method of calculating doubtful accounts as opposed to the percentage of receivables method?
Buckman Corporation issued bonds with a face value of $800,000 on April 1, 2008. The bonds pay interest semi-annually at a coupon rate of 10% per year and the due date of th