Stark Company has five employees. Employees paid by the hour receive a $11 per h

ID: 2393776 • Letter: S

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Stark Company has five employees. Employees paid by the hour receive a $11 per hour pay rate for the regular 40-hour workweek plus one and one-half times the hourly rate for each overtime hour beyond the 40 hours per week. Hourly employees are paid every two weeks, but salaried employees are paid monthly on the last biweekly payday of each month. FICA Social Security taxes are 6.2% of the first $118,500 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. The company has a benefits plan that includes medical insurance, life insurance, and retirement funding for employees. Under this plan, employees must contribute 5 percent of their gross income as a payroll withholding, which the company matches with double the amount. Following is the partially completed payroll register for the biweekly period ending August 31, which is the last payday of August.

a. Complete this payroll register by filling in all cells for the pay period ended August 31. (Round your answers to 2 decimal places.)

b, c, d & e. Prepare the August 31 journal entry to: (Round your answers to 2 decimal places.)
b. Record the accrued biweekly payroll and related liabilities for deductions.
c. Record the employer’s cash payment of the net payroll of part b.
d. Record the employer’s payroll taxes including the contribution to the benefits plan.
e. Pay all liabilities (except for the net payroll in part c) for this biweekly perio

Employee Cumulative Pay (Excludes Current Period) Current Period Gross Pay FIT Withholding FUTA FICA S.S. Employee FICA Medicare Employee Employee Plan Withholding Employee Net Pay Pay Type Pay Hours Gross Pay SIT Withholding SUTA FICA S.S. Employer FICA Medicare Employer Employer Plan Expense Kathleen $115,900.00 Salary $7,000.00 $2,350.00 $101.50 440.00 101.50 Anthony 6,250.00 Salary 570.00 94.00 35.34 8.27 28.50 27.00 35.34 8.27 57.00 Nichole 15,700.00 Regular 80 124.00 Overtime 9 32.00 Zoey 6,550.00 Regular 80 114.00 Overtime 5 29.00 Gracie 5,350.00 Regular 73 803.00 104.00 49.79 Overtime 28.00 49.79 11.64 Totals $149,750.00 $2,786.00 $0.00 $85.13 $109.77 $28.50 $0.00 556.00 0.00 85.13 121.41 57.00

Explanation / Answer

Employee Cumulative Pay (Excludes current period) Current Period Gross Pay FIT Withholding FUTA FICA SS Employee FICA Medicare Employee Employee Plan Withholding Employee Net Pay Pay Type Pay Hours Gross Pay SIT Withholding SUTA FICA SS Employer FICA Medicare Employer Employer Plan Expense Kathleen 115900.00 Salary 7000.00 2350.00 0 161.20 101.50 350.00 3597.30 440.00 0 161.20 101.50 700.00 Anthony 6250.00 Salary 570.00 94.00 3.42 35.34 8.27 28.50 376.90 27.00 30.78 35.34 8.27 57.00 Nichole 15700.00 Regular 80 1028.50 124.00 63.77 14.91 51.43 742.39 Overtime 9 32.00 63.77 14.91 102.85 Zoey 6550.00 Regular 80 962.50 114.00 2.70 59.68 13.96 48.13 697.74 Overtime 5 29.00 24.30 59.68 13.96 96.25 Grace 5350.00 Regular 73 803.00 104.00 4.82 49.79 11.64 40.15 569.42 Overtime 28.00 43.36 49.79 11.64 80.30 Totals 149750.00 10364.00 2786.00 10.94 369.77 150.28 518.20 5983.75 556.00 98.44 369.77 150.28 1036.40 b. Entry to record the payroll Date Account Title Debit Credit Aug.31 Salaries and Wages Expense 10364.00 Federal Income Tax Payable 2786.00 State Income Tax Payable 556.00 FICA Social Secutiry Tax Payable 369.77 FICA Medicare Tax Payable 150.28 Employee Medical Insurance Payable 518.20 Salaries and Wages Payable 5983.75 (Payroll for the pay period ending Aug.31) c. Cash payment of salaries and wages Date Account Title Debit Credit Aug.31 Salaries and wages payable 5983.75 Cash 5983.75 (Payment of payroll for Aug.31) d. Employer payroll taxes Date Account Title Debit Credit Aug.31 Payroll Tax Expense 1665.83 FICA Social Secutiry Tax Payable 369.77 FICA Medicare Tax Payable 150.28 FUTA Payable 10.94 SUTA Payable 98.44 Employee Medical Insurance Payable 1036.40 e. Payment of alll liabilities Date Account Title Debit Credit Aug.31 FICA Social Secutiry Tax Payable 739.54 FICA Medicare Tax Payable 300.56 Federal Income Tax Payable 2786.00 State Income Tax Payable 556.00 FUTA Payable 10.94 SUTA Payable 98.44 Employee Medical Insurance Payable 1554.60 Cash 6046.08

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Stark Company has five employees. Employees paid by the hour receive a $11 per h

Stark Company has five employees. Employees paid by the hour receive a $12 per h

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Stark Company has five employees. Employees paid by the hour receive a $11 per h

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