Solution-Compute the january salaries and commissions

Compute the january salaries and commissions expense

Assignment Help Cost Accounting

Reference no: EM13553660

Monthly Payroll Entries

Aggie Co. sells agricultural products. Aggie pays its salespeople a salary plus a commission.

The salary is the same for each salesperson, $1,000 per month. The commission varies by length of employment and is a percentage of the company's total gross sales. Each salesperson starts with a commission of 1.0%,which is increased an additional 0.5% for each full year of employment with Aggie, to a maximum of 5.0%. The total gross sales for the month of January were $120,000. Aggie has six salespeople as follows:

	Number of Years Employment
Frank	10
Sally	9
Tina	8
Barry	6
Mark	3
Lisa	075

Assume that the FICA rate is 7.65%, the FUTA rate is 6.2%, and the state unemployment rate is 5.4%. (Assume that the federal government allows the maximum credit for state unemployment tax paid.) The federal income tax withholding rate is 30%. Compute the January salaries and commissions expense, and make any necessary entries to record the payroll transactions including cash payment of all the taxes payable.

Reference no: EM13553660

Questions Cloud

Find at what distance from the lens will the image be : A converging lens has a focal length of 15.5 cm If it is placed 72.5 cm from an object, at what distance from the lens will the image be

Astronaut can be from the craft when the line breaks : A 63.0 kg astronaut is ona spacewalk when the tether line to the shuttle breaks. the astronaut is able to throw a 10.0 kg oxygen tank in a direction away from the shuttle with a speed of 12m/s, propelling the astronaut back to the shuttle.

Computing the amount of prepaid/accrued pension cost : Compute the amount of prepaid/accrued pension cost that would be reported on the balance sheet. Clearly indicate whether the amount would be shown as an asset or as a liability.

Amplitude is decreased by the same amount each cycle : A block of mass m is attached to a fixed wall by means of a spring whose force constant is k. The block slides on an inclined plane of angle θ. The kinetic friction coefficient between the block and the inclined surface is μ.

Compute the january salaries and commissions expense : The federal income tax withholding rate is 30%. Compute the January salaries and commissions expense, and make any necessary entries to record the payroll transactions including cash payment of all the taxes payable.

How many wavelengths does each pulse contain : A radar unit sends out 0.05 microsecond pulses of microwaves whose wavelength is 25 mm. How many wavelengths does each pulse contain

Explain what happen if the kinetic energy of the reactants : What would happen if the kinetic energy of the reactants were not enough to provide the needed activation energy

What is the speed of the bananas : At an outdoor market, a bunch of bananas is set into oscillatory motion with an amplitude of 20.1368 cm on a spring with a spring constant of 11.3993 N/m. What is the speed of the bananas

Simple computation of the net pension asset or liability : Simple Computation of the Net Pension Asset or Liability - Compute (1) the pension-related amount that should be reported on the company's balance sheet on January 1 of Year 1, (2) the PBO as of December 31

User Account

All Pages

Compute the january salaries and commissions expense

Reference no: EM13553660

Reference no: EM13553660

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT