+1-415-670-9189
info@expertsmind.com
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.

Required
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
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Rica's Fleet Feet, Inc., produces dance shoes for stores all over the world. While the pair of shoes are boxed individually, they are crated and shipped in batches. What is
Hobart Beverage Company uses the weighted-average method in its process costing system. Materials are included at the start of the production process but conversion costs ar
How would each of the following items be reported on the balance sheet? accrued vacation pay. Estimated taxes payable Current Liability. Service warranties on appliance sales
In recording 400 fees earned on account during a single month, how many times will it be necessary to write Fees Earned (a) if each transaction, including fees earned, is re
Analyse cash flow statements of the last three years and explain any three major changes which have occurred in relation to investing and/or financing activities of the busi
Prepare the general journal entries required in the General Fund of Lincoln County for each of the following transactions. Also, use transaction analysis to show any effects
If today is Year 0, what is the future value of the cash flows five years from now? (Do not include the dollar signs ($). Enter rounded answer as directed, but do not use th
Between August 2014 and February 2015, crude oil prices fell by nearly 50%. This would have affected the value of Ernie's wells by a substantial amount. Let's assume he was