158. A company's employees had the following earnings records at the close of the current payroll period:
Employees
|
Earnings through Prior Pay Period
|
Earnings This Pay Period
|
D. Adams
|
$11,300
|
$3,900
|
J. Hess
|
6,100
|
2,500
|
R. Lui
|
9,500
|
3,100
|
T. Morales
|
4,800
|
1,400
|
L. Vang
|
10,000
|
3,000
|
The company's payroll taxes expense on each employee's earnings includes: FICA Social Security taxes of 6.2% on the first $87,000 plus 1.45% FICA Medicare on all wages; 0.8% federal unemployment taxes on the first $7,000; and 2.5% state unemployment taxes on the first $7,000. Compute the employer's total payroll taxes expense for the current pay period.
159. An employer has an employee benefit package that includes employer-paid health insurance and an employer-paid retirement program. During January, the employer-paid health insurance equaled $7,500 and the amount the employer agreed to contribute to the employee retirement program was 10% of the employees' $150,000 gross salaries. Prepare the general journal entry to record these employee benefits.
160. A company sells its product subject to a warranty that covers the cost of parts for repairs during the six months after the date of sale. Warranty costs are estimated to be 6% of sales. During the month of June, the company performed warranty work and used $12,000 worth of parts for the warranty repairs. The total sales for June were equal to $450,000.
1. Record the warranty expense for the month of June.
2. Record the costs of the warranty work completed in June.
3. If the Estimated Warranty Liability account had a credit balance of $10,000 on May 31, what is the account balance at June 30?
161. A company sells personal computers, with an included two-year warranty for $2,300 each. During the current year, the company sells 400 computers. On the basis of past experience, the warranty costs are estimated to be $250 per computer. The actual warranty costs (paid in cash) by the company during the current year were $65,000. Prepare general journal entries to record the (a) estimated warranty expense and (b) warranty repair costs during current year.