Prepare the journal entries to record the factory, sales

Assignment Help Accounting Basics
Reference no: EM13970196

(Payroll Tax Entries) Allison Hardware Company's payroll for November 2012 is summarized below.


 

Amount Subject to Payroll Taxes

     

Unemployment Tax

Payroll

Wages Due

FICA

Federal

State

Factory

$140,000

$140,000

$40,000

$40,000

Sales

32,000

32,000

4,000

4,000

Administrative

36,000

36,000

-

-

Total

$208,000

$208,000

$44,000

$44,000

At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee's wages to $106,800 and 1.45% in excess of $106,800. Of the $208,000 wages subject to FICA tax, $20,000 of the sales wages is in excess of $106,800. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $16,000 for factory, $7,000 for sales, and $6,000 for administrative.

Instructions

(a) Prepare a schedule showing the employer's total cost of wages for November by function.

(b) Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer's payroll taxes.

Reference no: EM13970196

Questions Cloud

Review the case study titled turn it around : Review the case study titled "Turn it Around", in which Dr. P. De Gogy, a newly hired superintendent of a small rural school district, must develop a plan to address and correct a myriad of issues and challenges within the district.
What risks to dwight of revising income statement to meet : What are the risks to Dwight of revising the income statement to meet the target figure? What are the risks to Dwight of not revising the income statement to meet the target figure?
How would you be able to avoid any change in your culture : How would you be able to avoid any change in your culture? Do fads and fashions reflect and reinforce or challenge and change the values and norms of a society?
Compute the expected number of squares : Compute the expected number of squares that would have 0, 1, 2, 3, 4, and 5 or more hits and compare this with the observed results.
Prepare the journal entries to record the factory, sales : Prepare a schedule showing the employer's total cost of wages for November by function. Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer's payroll taxes.
Discuss the difference between book values and market values : Discuss the difference between book values and market values and explain which one is more important to the financial manager and why.
Compute roi, using net book value for each year : Compute ROI, using net book value for each year. Compute ROI, using gross book value for each year.
Your aunt offers you a choice of 20100 in 20 years or 870 : Your aunt offers you a choice of $20,100 in 20 years or $870 today. If money is discounted at 9 percent, which should you choose?
Compare circuit and packet-switched networks. : Explain the concept of Ohm's law and its importance to circuit troubleshooting. Compare circuit and packet-switched networks.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Ordinary loss limitations on the sale of section

Discuss the ordinary loss limitations on the sale of section 1244 stock and the advantages of such a characterization.

  A corporation provided its employees with health insurance

a corporation provided its employees with health insurance coverage. the premiums for each employee are 10000 a year

  Brewer company is considering purchasing a machine that

brewer company is considering purchasing a machine that would cost 464610 and have a useful life of 7 years. the

  Assume that sufficient time is available on the constrained

the constraint at mcglathery corporation is time on a particular machine. the company makes three products that use

  Prices for transactions between the investment centers

From an organizational point of view, two approaches to transfer pricing are (a) to let the managers of profit centers bargain with one another and arrive at their own transfer prices

  Lower the firms break-even point

Managment wants to lower the firm's break-even point to 52,000 units all other thing being equal. what must happen to fixed costs to archieve this objective?

  Internet significantly influenced business

Porter's Five Forces. The internet significantly influenced business and strategic planning. In your opinion, according to Porter's Five Forces Model, has competition increased or decreased overall as a result of the Internet and e-commerce? Justi..

  Best measure of risk for an asset

Which is the best measure of risk for an asset held in isolation, and which is the best measure for an asset held in a diversified portfolio?

  The city orders a fire truck estimated to cost 140000 the

the city orders a fire truck estimated to cost 140000. the fire truck arrives with an invoice of 138000. a voucher is

  Land and a warehouse were acquired for 710000 what amounts

land and a warehouse were acquired for 710000. what amounts should be recorded in the accounting records for land and

  Responsibility for the fixed cost volume variance ragan

responsibility for the fixed cost volume variance ragan company expected to sell 400000 of its pagers during 2011. it

  Arnies landscaping company is preparing its budget for the

arnies landscaping company is preparing its budget for the first quarter of 2012. the next step in the budgeting

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd