Question
Anthony Company pays salaries and wages on the last day of each month. Payments made on December 31, 2016, for amounts incurred during December are
Anthony Company pays salaries and wages on the last day of each month. Payments made on December 31, 2016, for amounts incurred during December are shown below. Cumulative amounts paid prior to December 31 to the persons named are also shown. | |
a. | Mark Anthony, president, gross monthly salary $12,000; gross earnings paid prior to December 31, $132,000. |
b. | Carol Swartz, vice president, gross monthly salary $10,000; gross earnings paid prior to December 31, $100,000. |
c. | Jenny Rios, independent accountant who audits the companys accounts and performs certain consulting services, $13,000; gross amount paid prior to December 31, $25,000. |
d. | Henry House, treasurer, gross monthly salary $6,500; gross earnings paid prior to December 31, $71,500. |
e. | Payment to Wright Security Services for Eddie Wright, a security guard who is on duty on Saturdays and Sundays, $1,000; amount paid to Wright Security Services prior to December 31, $11,000. |
1. | Assume a 6.2 percent social security rate on the first $113,700 earned by the employee during the year and prepare a schedule showing the following information: (Round your final answers to 2 decimal places. ) |
a. | Each employees cumulative earnings prior to December 31. |
b. | Each employees gross earnings for December. |
c. | The amounts to be withheld for each payroll tax from each employees earnings (employee income tax withholdings for Anthony are $3,216; for Swartz, $2,646; and for House, $1,244). |
d. | The net amount due each employee. |
e. | The total gross earnings, the total of each payroll tax deduction, and the total net amount payable to |
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