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
The Ellis Machine Tool Company is considering production for a special order for 10,000pieces at $0.65 apiece, which is below the regular price. The current operating level,
You are the auditor for a company and need to review the company's accounts receivable using probability proportional to size (PPS) sampling. In addition, the board of direc
The first payment will be due in 6 months, the second in 18 months and the third in 30 months. What is the size of these payments if money is worth 10% compounded quarterly
When organizations purchase an asset they are able to depreciate the item on the balance sheet and record the expense on the income statement. What are the pros of purchasin
Some companies argued that the recognition provisions of the standard are not needed, because the computation of earnings per share takes into account dilutive securities such
LO.2 In 2011, Emma purchased an automobile, which she uses for both business and personal purposes. Although Emma does not keep records as to operating expenses
Analyze the impact to CPAs who practice within a very litigious environment in the U.S. Suggest what you believe to be the most effective way for CPAs to protect themselves
Prepare a journal entry summarizing the payment of Bob's total salary during the year. Prepare a journal entry summarizing the employer payroll tax expense on Bob's salary for