chapter 10 02 instructions The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co Salaries Deductions Sales salaries $325,000 Income tax withheld $119,000 Warehouse salaries 196,000 U S savings bonds 14,344 Office salaries 131,000 Group insurance 11,736 $652,000 Tax rates assumed Social security 6 State unemployment (employer only) 5 4 Medicare 1 5 Federal unemployment (employer only) 0 8 Required 1 Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles) a December 30, to record the payroll b December 30, to record the employers payroll taxes on the payroll to be paid on December 31 Of the total payroll for the last week of the year, $44,000 is subject to unemployment compensation taxes 2 Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles) On page 11 of the journal December 30, to record the payroll On page 12 of the journal January 5, to record the employer's payroll taxes on the payroll to be paid on January 5 Since it is a new fiscal year, all $652,000 in salaries is subject to unemployment compensation taxes CHART OF ACCOUNTS Boltz Co General Ledger ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation Building 125 Office Equipment 126 Accumulated Depreciation Office Equipment LIABILITIES 210 Accounts Payable 213 Interest Payable 214 Notes Payable 215 Salaries Payable 216 Social Security Tax Payable 217 Medicare Tax Payable 218 Employees Income Tax Payable 220 Group Insurance Payable 221 Bond Deductions Payable 222 Union Dues Payable 223 Retirement Savings Deductions Payable 224 Federal Unemployment Tax Payable 225 State Unemployment Tax Payable 226 Vacation Pay Payable 227 Unfunded Pension Liability EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Sales Salaries Expense 521 Warehouse Salaries Expense 522 Office Salaries Expense 524 Depreciation Expense Building 525 Delivery Expense 526 Repairs Expense 529 Selling Expenses 531 Rent Expense 532 Depreciation Expense Office Equipment 533 Insurance Expense 534 Supplies Expense 535 Payroll Tax Expense 536 Vacation Pay Expense 537 Pension Expense 538 Cash Short and Over 540 Miscellaneous Expense 710 Interest Expense croll down to access additional pages of the journal 1 Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles) a December 30, to record the payroll b December 30, to record the employer's payroll taxes on the payroll to be paid on December 31 Of the total payroll for the last week of the year, $44,000 is subject to unemployment compensation taxes PAGE 11 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Solution DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Points Feedback Check My Work Explanation 2 Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles) a On page 11 of the journal December 30, to record the payroll b On page 12 of the journal January 5, to record the employers payroll taxes on the payroll to be paid on January 5 Since it is a new fiscal year, all $652,000 in salaries is subject to unemployment compensation taxes PAGE 11 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 7 8 9 Solution DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 7 8 9 Points PAGE 12 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 PROBLEM 10 3 Wage and Tax Statement Data on Employer Federal Insurance Contributions Act tax used to finance federal programs for old age and disability benefits (social security) and health insurance for the aged (Medicare) FICA Tax Ehrlich Co began business on January 2 Salaries were paid to employees on the last day of each month, and social security tax, Medicare tax, and federal income tax were withheld in the required amounts An employee who is hired in the middle of the month receives half the monthly salary for that month All required The total amount paid to employees for a certain period payroll tax reports were filed, and the correct amount of payroll taxes was remitted by the company for the calendar year Early in the following year, before the Wage and Tax Statements (Form W 2) could be prepared for distribution to employees and for filing with the Social Security Administration, the A detailed record of each employee's earnings employees' earnings records were inadvertently destroyed None of the employees resigned or were discharged during the year, and there were no changes in salary rates The social security tax was withheld at the rate of 6 0 and Medicare tax at the rate of 1 5 on salary Data on dates of employment, salary rates, and employees' income taxes withheld, which are summarized as follows, were obtained from personnel records and payroll records Employee Date First Employed Monthly Salary Monthly Income Tax Withheld Arnett Nov 16 $3,700 $548 Cruz Jan 2 5,300 996 Edwards Oct 1 2,200 273 Harvin Dec 1 2,200 273 Nicks Feb 1 10,000 2,250 Shiancoe Mar 1 3,700 566 Ward Nov 16 8,800 1,901 Required 1 Calculate the amounts to be reported on each employee's Wage and Tax Statement (Form W 2) Enter amounts to the nearest cent if required Enter all amounts as positive numbers Employee Gross Earnings Federal Income Tax Withheld Social Security Tax Withheld Medicare Tax Withheld Arnett $ $ $ $ Cruz Edwards Harvin Nicks Shiancoe Ward $ $ 2 Calculate the following employer payroll taxes for the year (a) social security (b) Medicare (c) state unemployment compensation at 5 4 on the first $10,000 of each employee's earnings (d) federal unemployment compensation at 0 8 on the first $10,000 of each employee's earnings (e) total Round your answers to two decimal places (a) $ (b) $ (c) $ (d) $ (e) $

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 17, 2024

chapter 10-02 instructions The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co.: Salaries: Deductions:

chapter 10-02 instructions

The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co.:

Salaries:		Deductions:
Sales salaries	$325,000	Income tax withheld	$119,000
Warehouse salaries	196,000	U.S. savings bonds	14,344
Office salaries	131,000	Group insurance	11,736
	$652,000


Tax rates assumed:
Social security	6%	State unemployment (employer only)	5.4%
Medicare	1.5%	Federal unemployment (employer only)	0.8%

Required:

Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):

	a. December 30, to record the payroll.
	b. December 30, to record the employers payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $44,000 is subject to unemployment compensation taxes.

Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):

On page 11 of the journal: December 30, to record the payroll.

On page 12 of the journal: January 5, to record the employer's payroll taxes on the payroll to be paid on January 5. Since it is a new fiscal year, all $652,000 in salaries is subject to unemployment compensation taxes.

CHART OF ACCOUNTS

Boltz Co.

General Ledger

	ASSETS
110	Cash
111	Accounts Receivable
112	Interest Receivable
113	Notes Receivable
115	Inventory
116	Supplies
118	Prepaid Insurance
120	Land
123	Building
124	Accumulated Depreciation-Building
125	Office Equipment
126	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
213	Interest Payable
214	Notes Payable
215	Salaries Payable
216	Social Security Tax Payable
217	Medicare Tax Payable
218	Employees Income Tax Payable
220	Group Insurance Payable
221	Bond Deductions Payable
222	Union Dues Payable
223	Retirement Savings Deductions Payable
224	Federal Unemployment Tax Payable
225	State Unemployment Tax Payable
226	Vacation Pay Payable
227	Unfunded Pension Liability

	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends
313	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Goods Sold
520	Sales Salaries Expense
521	Warehouse Salaries Expense
522	Office Salaries Expense
524	Depreciation Expense-Building
525	Delivery Expense
526	Repairs Expense
529	Selling Expenses
531	Rent Expense
532	Depreciation Expense-Office Equipment
533	Insurance Expense
534	Supplies Expense
535	Payroll Tax Expense
536	Vacation Pay Expense
537	Pension Expense
538	Cash Short and Over
540	Miscellaneous Expense
710	Interest Expense

croll down to access additional pages of the journal.

Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):

	a. December 30, to record the payroll.
	b. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $44,000 is subject to unemployment compensation taxes.

PAGE 11

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6
7
8
9
10
11
12
13
14

Solution

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6
7
8
9
10
11
12
13
14

Points:

Feedback

Check My Work

Explanation

	a. On page 11 of the journal: December 30, to record the payroll.
	b. On page 12 of the journal: January 5, to record the employers payroll taxes on the payroll to be paid on January 5. Since it is a new fiscal year, all $652,000 in salaries is subject to unemployment compensation taxes.

PAGE 11

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6
7
8
9

Solution

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6
7
8
9

Points:

PAGE 12

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5

PROBLEM 10-3 Wage and Tax Statement Data on Employer Federal Insurance Contributions Act tax used to finance federal programs for old-age and disability benefits (social security) and health insurance for the aged (Medicare).FICA Tax

Ehrlich Co. began business on January 2. Salaries were paid to employees on the last day of each month, and social security tax, Medicare tax, and federal income tax were withheld in the required amounts. An employee who is hired in the middle of the month receives half the monthly salary for that month. All required The total amount paid to employees for a certain period.payroll tax reports were filed, and the correct amount of payroll taxes was remitted by the company for the calendar year. Early in the following year, before the Wage and Tax Statements (Form W-2) could be prepared for distribution to employees and for filing with the Social Security Administration, the A detailed record of each employee's earnings.employees' earnings records were inadvertently destroyed.

None of the employees resigned or were discharged during the year, and there were no changes in salary rates. The social security tax was withheld at the rate of 6.0% and Medicare tax at the rate of 1.5% on salary. Data on dates of employment, salary rates, and employees' income taxes withheld, which are summarized as follows, were obtained from personnel records and payroll records:

Employee	Date First Employed	Monthly Salary	Monthly Income Tax Withheld
Arnett	Nov. 16	$3,700	$548
Cruz	Jan. 2	5,300	996
Edwards	Oct. 1	2,200	273
Harvin	Dec. 1	2,200	273
Nicks	Feb. 1	10,000	2,250
Shiancoe	Mar. 1	3,700	566
Ward	Nov. 16	8,800	1,901

Required:

1. Calculate the amounts to be reported on each employee's Wage and Tax Statement (Form W-2). Enter amounts to the nearest cent if required. Enter all amounts as positive numbers.

Employee	Gross Earnings	Federal Income Tax Withheld	Social Security Tax Withheld	Medicare Tax Withheld
Arnett	$	$	$	$
Cruz
Edwards
Harvin
Nicks
Shiancoe
Ward
			$	$

2. Calculate the following employer payroll taxes for the year: (a) social security; (b) Medicare; (c) state unemployment compensation at 5.4% on the first $10,000 of each employee's earnings; (d) federal unemployment compensation at 0.8% on the first $10,000 of each employee's earnings; (e) total. Round your answers to two decimal places.