Tutors .111 4:29 AM Problem #3 Blue Night Software Company\'s payroll for Octobe

ID: 2604726 • Letter: T

Question

Tutors .111 4:29 AM Problem #3 Blue Night Software Company's payroll for October 2017 is summarized below Payroll Waes Due EICA Federal Factory $33,000 $141,000 $141,000 $33,000 4,500 55.500 .500 $245,000 $245,000 $45,000 Sales 48,500 48,500 4,500 Admin. 55.500 .500 $45,000 At this point in the year, some employees have already those to which payroll taxes apply. Assume that the state The FICA rate is 7.65% on an employee's wages up to of $118,500. Of the $245,000 wages subject to FICA tax, is in excess of $118,500. Federal unemployment tax rate tax withheld amounts to $19,200 for factory, $9,400 for administrative Total received wages in excess of unemployment tax is 3.2%. $118,500 and 1.45% in excess $21,500 of the sales wages is 0.8% after credits. Income sales, and $11,400 for (a) Prepare a schedule showing the employer's total cost of wages for October by function. (Round all computations to the nearest dollar.) (b) Prepare the journal entries to record the factory sales, and administrative payrolls including the employer's payroll taxes Problem#4

Explanation / Answer

Part 1

Total

factory

sales

administrative

Wage

245000

141000

48500

55500

FICA

17410

10787

141000*7.65%

2377

(21500*1.45%)+(27000*7.65%)

4246

55500*7.65%

Federal UC

360

264

33000*0.8%

4500*0.8%

7500*0.8%

State UC

1440

1056

33000*3.2%

144

4500*3.2%

240

7500*3.2%

total

264210

153107

51057

60046

PART 2 journal entries

Factory payroll

Wages/salaries expense Dr. 141000

Withholding taxes payable Cr. 19200

FICA payable Cr. 10787

Cash (balancing figure) Cr. 111013

Payroll tax expense Dr. 12107

FICA payable Cr. 10787

FUTA payable Cr. 264

SUTA payable Cr. 1056

Sales payroll

Wages/salaries expense Dr. 48500

Withholding taxes payable Cr. 9400

FICA payable Cr. 2377

Cash (balancing figure) Cr. 36723

Payroll tax expense Dr. 2557