Prepare necessary journal entries if wages and salaries paid

Reference no: EM131956319

Problem

The payroll of YellowCard Company for September 2016 is as follows. Total payroll was $480,400, of which $110,000 is exempt from Social Security tax because it represented amounts paid in excess of $118,500 to certain employees. The amount paid to employees in excess of $7,000 was $400,000. Income taxes in the amount of $80,000 were withheld, as was $9,000 in union dues. The state unemployment tax is 3.5%, but YellowCard Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee's wages to $118,500 and 1.45% in excess of $118,500. No employee for YellowCard makes more than $125,000. The federal unemployment tax rate is 0.8% after state credit. Prepare the necessary journal entries if (a) the wages and salaries paid (5 lines) and (b) the employer payroll taxes are recorded separately (4 lines).

Reference no: EM131956319

Questions Cloud

Submit a briefing paper of your business idea : Please submit a 5-page briefing paper of your business idea, its essential business model components, and aspects that will influence its success

How much is the total amount of budgeted direct labor : Manufacturing overhead is applied at 120% of direct labor costs. How much is the total amount of budgeted direct labor for the quarter?

What is the maximum number of theoretical plates : What is the maximum number of theoretical plates that could be obtained in this analysis? (Assume that longitudinal diffusion is the only band-broadening factor

Standard reduction potentials in acid solution : Consider the following standard reduction potentials in acid solution:

Prepare necessary journal entries if wages and salaries paid : Prepare the necessary journal entries if (a) the wages and salaries paid (5 lines) and (b) the employer payroll taxes are recorded separately (4 lines).

How can consumers be sure that contamination occurred : "How can consumers be sure that contamination occurred at the produce supplier and not inside filthy restaurants?"

Is offshoring a problem to your country : The make-versus-buy decision is important every time a new application is requested of the IS group.

Determine the material quantity variance : Paz-Bucheli & Le Technologies material quantity standard. Determine the material price variance, the material quantity variance and the spending variance.

Does a captive center resolve the concerns managers have : Does a captive center resolve the concerns managers have about outsourcing to a third party vendor? Why or why not?

User Account

All Pages