188. A company’s employer payroll tax rates are 0.6% for federal unemployment taxes, 5.4% for state unemployment taxes, 6.2% for FICA social security taxes on earnings up to $117,000, and 1.45% for FICA Medicare taxes on all earnings. Compute the W-2 Wage and Tax Statement information required below for the following employees:
A. Baylor $114,000 $17,600
C. Jasmine 52,000 8,200
A. BaylorC. Jasmine
W-2 Information: ________ ________
Federal Income Tax Withheld………….. ________ ________
Wages, Tips, Other Compensation……... ________ ________
Social Security Tax Withheld…………... ________ ________
Social Security Wages………………….. ________ ________
Medicare Tax Withheld………………… ________ ________
Medicare Wages………………………… ________ ________
189. The payroll records of a company provided the following data for the current weekly pay period ended March 12.
|
Earnings
to End of
|
|
Federal
|
Medical
|
|
|
Previous
|
Gross
|
Income
|
Insurance
|
UnionUnited
|
Employees
|
Week
|
Pay
|
Taxes
|
Deduction
|
DuesWay
|
D. Hui…….
|
$ 5,800
|
$800
|
$120
|
$35
|
$10$10
|
B. Kim…….
|
6,850
|
1,100
|
180
|
35
|
1015
|
C. Sly…...
|
12,900
|
1,440
|
404
|
35
|
1040
|
Assume that the Social Security portion of the FICA taxes is 6.2% on the first $117,000 and the Medicare portion is 1.45% of all wages paid to each employee for this pay period. The federal and state unemployment tax rates are 0.8% and 5.4%, respectively, on the first $7,000 paid to each employee.Calculate the net pay for each employee.
190. A company’s payroll information for the month of May follows:
Administrative salaries ...................
|
$4,000
|
Sales salaries..........................
|
5,500
|
FICA-Social Security taxes withheld..........
|
589
|
FICA-Medicare taxes withheld..............
|
138
|
Federal income taxes withheld..............
|
1,300
|
Medical insurance premiums withheld.........
|
415
|
Union dues withheld.....................
|
205
|
On May 31 the company issued Check No. 4625 payable to the Payroll Bank Account to pay for the May payroll. It issued payroll checks to the employees after depositing the check.
(1) Prepare the journal entry to record (accrue) the employer’s payroll for May. (2) Prepare the journal entry to record payment of the May payroll. The federal and state unemployment tax rates are 0.6% and 5.4%, respectively, on the first $7,000 paid to each employee. The wages and salaries subject to these taxes were $6,000. (3) Prepare the journal entry to record the employer’s payroll taxes.
191. Cardinal Company sells merchandise for $24,000 cash on March 31 (cost of merchandise is $12,300). The sales tax law requires Cardinal to collect 8.5% sales tax on every dollar of merchandise sold. Record the entry for the sale and its applicable sales tax.
192. Star Recreation receives $48,000 cash in advance ticket sales for 12 home games. Record the advance ticket sales on April 30. Record the revenue earned for the first home game played on August 14.