On january 8 the end of the first weekly pay period of the

Reference no: EM13601504

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%.

Reference no: EM13601504

Questions Cloud

Joe flubup is the president of flubup inc he is considering : joe flubup is the president of flubup inc. he is considering buying a new machine that would cost 25470. joe has

Compute the following use 365 days a year do not round : selected year-end financial statements of mccord corporation follow. all sales were on credit selected balance sheet

Carbert corporation has provided the following production : carbert corporation has provided the following production and average cost data for two levels of monthly production

In its radio fund-raising campaign national public radio : in its radio fund-raising campaign national public radio npr stated on-air radio membership campaigns are the most

On january 8 the end of the first weekly pay period of the : on january 8 the end of the first weekly pay period of the year royal companys payroll register showed that its

Luft company uses the weighted-average method in its : luft company uses the weighted-average method in its process costing system. operating data for the first processing

Shirtz community hospital has decided to estimate costs by : shirtz community hospital has been under increasing pressure to be accountable for its patient charges. the hospitals

On october 29 2010 lue co began operations by purchasing : on october 29 2010 lue co. began operations by purchasing razors for resale. lue uses the perpetual inventory method.

All materials are added at the beginning of the production : beginning inventory units3000 material costs4500 conversion costs4800 started during the current period units20000

User Account

All Pages