173. Journalize the following entries on the books of Winston Co. for August 1, September 1, and November 30. (Assume a 360-day year is used for interest calculations.)
174. The following information is for employee Ella Dodd for the week ended March 15.
Total hours worked: 48
Rate: $15 per hour, with double time for all hours in excess of 40
Federal income tax withheld: $200
United Fund deduction: $50
Cumulative earnings prior to current week: $6,400
Tax rates:
Social security: 6% on maximum earnings of $100,000. Medicare tax:
1.5% on all earnings.
State unemployment: 3.4% on maximum earnings of $7,000; on employer
Federal unemployment: 0.8% on maximum earnings of $7,000; on employer
(a)Determine (1) total earnings, (2) total deductions, and (3) cash paid.
(b)Determine each of the employer's payroll taxes related to the earnings of Ella Dodd for the week ended March 15.
175. The summary of the payroll for the monthly pay period ending July 15 indicated the following:
Sales salaries$125,000
Federal income tax withheld32,300
Office salaries35,000
Medical insurance withheld7,370
Social security tax withheld10,200
Medicare tax withheld2,550
Journalize the entries to record (a) the payroll and (b) the employer's payroll tax expense for the month. The state unemployment tax rate is 3.1%, and the federal unemployment tax rate is 0.8%. Only $25,000 of salaries are subject to unemployment taxes.