Prepare the necessary journal entries if the salaries paid

Assignment Help Accounting Basics

Reference no: EM131959429

Problem

The payroll of YellowCard Company for September 2016 is as follows.

Total payroll was $480,000, of which si10,000 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 1A5% in excess of $118500. No employee for YellowCard makes more than $125,000. The federal unemployment tax rate is 0.8% after state credit.

Instructions

Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately.

Reference no: EM131959429

Questions Cloud

Choose development needs : 1) Choose 3 development needs that you believe are most important to you. Explain your choice

Prepare all adjusting entries required on december : Prepare journal entries for each of these transactions. Prepare all adjusting entries required on December 31

What is jax and taras tax due-refund : Jax, 35, and Tara, 34, are married and have two kids Abel, 6, and Thomas, 6 months. Gemma, Jax's mother, also lives with Jax and Tara.

Approaches to international market entry : 1. Describe the advantages and disadvantages of the approaches to international market entry discussed in chapter ten.

Prepare the necessary journal entries if the salaries paid : Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately.

Ounces of homemade salsa : Today, Ana has 8.5 pounds of beef, 13 cups of beans, 95 ounces of homemade salsa, and 125 ounces of hot sauce available. Demand is unlimited.

What is the operating cash flow for this project : Jefferson & Sons is evaluating a project that will increase annual sales by $145.000 and annual cash costs by $94,000.

Control the performance of the staff : Managers established a controlled budget system as a management plan if they cannot achieve it then that might lead to an ethical problem.

Upholding fundamental freedoms : Regarding the norms: upholding fundamental freedoms, respect for property, valuing privacy, protection from crime, right of self-defense

User Account

All Pages