Question
please try and be specific,trying to understand how to work these, thanks!
Cr. Warranty Expense 400 Cr. Cash 400 Cr Warranty Liability 400 Cr. Accounts Payable 400 b) Dr. Warranty Liability 400 Dr. Warranty Expense 400 d) Dr. Cash 400 ) Kyle's employees work for a total of 300 hours this pay period. He pays them all a flat rate of$15 per hour, withholdings from tbeir pay include 5% state income tax, 15% federal income tax, 7.65% FICA taxes, and S200 ior employees' portion or their health benefits. In addition, Kyle pays 7.65% FICA taxes (employer portion), 62% unemployment tax and S 1100 for his portion of employee health benefits. How much wages payable will Kyle record this pay period? a) $6,223.25 b) $4,500 c) 53,255.75 d) $3,055.75 ) Claire sells a SS item to a customer. Since sales tax is 10%, Claire collects a total of $5.50 from the customer. How would she record this transaction? (Claire uses a periodic inventory system so you can ignore cost of goods sold)
Explanation / Answer
Total Gross pay = 300*15 = 4500
Total % of withholdings = (5+15+7.65 )% + 200 = 27.65%of gross pay + 200
= (27.65% of 4500)+200
= 1244.25+200 = 1444.25
Amount credited as wages payable = gross pay -withholdings]
= 4500 -1444.25
= 3055.75
correct option is "D"
