Hira Hardware has four employees who are paid on an hourly basis plus time- and-

Question

Hira Hardware has four employees who are paid on an hourly basis plus time-
and-a half for all hours worked in excess of 40 a week. Payroll data for the
week ended March 15, 2012, are presented below.


Hana and Alina are married. They claim 0 and 4 withholding allowances, respectively. The following tax rates are applicable: FICA 8%, state income taxes 3%, state unemployment taxes 5.4%, and federal unemployment 0.8%.
Instructions

(a) Prepare a payroll register for the weekly payroll. (Use the wage-bracket withholding table in the text for federal income tax withholdings.)

(b) Journalize the payroll on March 15, 2012, and the accrual of employer payroll taxes.

(c) Journalize the payment of the payroll on March 16, 2012.

(d) Journalize the deposit in a Federal Reserve bank on March 31, 2012, of the FICA and federal income taxes payable to the government.

Explanation / Answer

Earnings Deductions Employee Hours Regular Over-time Gross Pay FICA Fed. State U.F. Total Net Pay Store wages Expense L.Leiss       39.00     546.00          546.00       43.68       48.00       16.38            -       108.06     437.94     546.00 S. Bjork       42.00     480.00          36.00          516.00       41.28       27.00       15.48        5.00       88.76     427.24     516.00 M. Cape       44.00     480.00          72.00          552.00       44.16       61.00       16.56        7.50     129.22     422.78     552.00 L. Wild       48.00     480.00        144.00          624.00       49.92       52.00       18.72        5.00     125.64     498.36    Totals 1,986.00        252.00        2,238.00     179.04     188.00       67.14       17.50     451.68 1,786.32 1,614.00 (b) Date Accounts and Explanations Debit Credit Feb   15 Store Wage Expense        1,614.00 Office Wage Expense          624.00      FICA Taxes Payable     179.04      Federal Income Taxes Payable     188.00      State Income Taxes Payable       67.14      United Fund Payable       17.50      Wages Payable 1,786.32 15 Payroll Tax Expense          317.79     FICA Taxes Payable     179.04     Federal Unemployment Taxes Payable       17.90     State Unemployment Taxes Payable     120.85 (c) Feb   16 Wages Payable        1,786.32      Cash 1,786.32 (d) Feb   28 FICA Taxes Payable          358.08 Federal Income Taxes Payable          188.00      Cash     546.08

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