. rk Company has five employees. Employees paid by the hour receive a $10 per ho
ID: 2403492 • Letter: #
Question
. rk Company has five employees. Employees paid by the hour receive a $10 per hour pay rate for the regular 40-hour work week 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 $113,700 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. Complete this payroll register by filling in all cells for the pay period ended August 31. (Round your answers to 2 decimal places.) b. Prepare the August 31 journal entry to record the accrued biweekly payroll and related liabilities for deductions 1. Aug salaries (wages ) expenses Debit / Credit Prepare the August 31 journal entry to record the employer’s cash payment of the net payroll of part b. (Round your answers to 2 decimal places.) d. Prepare the August 31 journal entry to record the employer’s payroll taxes including the contribution to the benefits plan. (Round your answers to 2 decimal places.) e. Prepare the August 31 journal entry to pay all liabilities (except net payroll in part c) for this biweekly period. (Round your answers to 2 decimal places.)
Explanation / Answer
Cash xxxFederal withholding taxes payablexxx Social security taxes payablexxx Medicare taxes payablexxx Federal unemployment taxes payablexxx State withholding taxes payablexxx State unemployment taxes payablexxx Garnishments payablexxx
Debit Credit Direct labor expense Salaries expense Accrued salaries and wages Accrued payroll taxesRelated Questions
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