Complete Accounting Services has the following payroll information for the week ended December 7. State income tax is computed as 20 percent of federal income tax. DEDUCTIONS BEGINNING CUMULATIVE TOTAL FEDERAL INCOME TAX STATE INCOME TAX NAME EARNINGS EARNINGS Denato, T. 6,836.00 484.00 12.00 2.40 Herrera, M. 6,836.00 465.00 10.00 2.00 Joyner, J. 36,337.00 736.00 46.00 9.20 King, L. 26,286.00 535.00 17.00 3.40 Wilson, M. 116,425.00 2,720.00 471.91 94.38 Yee, N. 28,405.00 618.00 25.00 5.00 Assumed tax rates are as follows: a. FICA: Social Security, (employer) 6.2 percent (0.062) and (employee) 6.2 percent (0.062) on the first $118,500 for each employee, and Medicare, 1.45 percent (0.0145) on all earnings for each employee. b. State unemployment tax, 5.4 percent (0.054) on the first $7,000 for each employee. C. Federal unemployment tax, 0.6 percent (0.006) on the first $7,000 for each employee. 2. Prepare a general journal entry to record the payroll as of December 7. The company's general ledger contains a Salary Expense account and a Salaries Payable account. If an amount box does not require an entry, leave it blank. If required, round your intermediate calculations and final answers to the nearest cent and use the rounded answers in subsequent computations. PAGE GENERAL JOURNAL DESCRIPTION DATE POST. REF. DEBIT CREDIT 20-- Dec. 7 Payroll register for week ended December 7. 3. Prepare a general journal entry to record the payroll taxes as of December 7. If an amount box does not require an entry, leave it blank. If required, round your intermediate calculations and final answers to the nearest cent and use the rounded answers in subsequent computations. GENERAL JOURNAL PAGE POST. DATE DESCRIPTION DEBIT CREDIT REF. 20-- Dec. 7 To record employer's share of FICA taxes and employer's state and federal unemployment taxes. 4. Journalize the entry to pay the payroll on December 9. (Assume that the company has transferred cash to the Cash-Payroll Bank Account for this payroll.) Round your answers to the nearest cent. GENERAL JOURNAL PAGE DATE DESCRIPTION POST. REF. DEBIT CREDIT 20-- Dec. 9 Cash-Payroll Bank Account Paid salaries for week ended December 7. Complete Accounting Services has the following payroll information for the week ended December 7. State income tax is computed as 20 percent of federal income tax. DEDUCTIONS BEGINNING CUMULATIVE TOTAL FEDERAL INCOME TAX STATE INCOME TAX NAME EARNINGS EARNINGS Denato, T. 6,836.00 484.00 12.00 2.40 Herrera, M. 6,836.00 465.00 10.00 2.00 Joyner, J. 36,337.00 736.00 46.00 9.20 King, L. 26,286.00 535.00 17.00 3.40 Wilson, M. 116,425.00 2,720.00 471.91 94.38 Yee, N. 28,405.00 618.00 25.00 5.00 Assumed tax rates are as follows: a. FICA: Social Security, (employer) 6.2 percent (0.062) and (employee) 6.2 percent (0.062) on the first $118,500 for each employee, and Medicare, 1.45 percent (0.0145) on all earnings for each employee. b. State unemployment tax, 5.4 percent (0.054) on the first $7,000 for each employee. C. Federal unemployment tax, 0.6 percent (0.006) on the first $7,000 for each employee. 2. Prepare a general journal entry to record the payroll as of December 7. The company's general ledger contains a Salary Expense account and a Salaries Payable account. If an amount box does not require an entry, leave it blank. If required, round your intermediate calculations and final answers to the nearest cent and use the rounded answers in subsequent computations. PAGE GENERAL JOURNAL DESCRIPTION DATE POST. REF. DEBIT CREDIT 20-- Dec. 7 Payroll register for week ended December 7. 3. Prepare a general journal entry to record the payroll taxes as of December 7. If an amount box does not require an entry, leave it blank. If required, round your intermediate calculations and final answers to the nearest cent and use the rounded answers in subsequent computations. GENERAL JOURNAL PAGE POST. DATE DESCRIPTION DEBIT CREDIT REF. 20-- Dec. 7 To record employer's share of FICA taxes and employer's state and federal unemployment taxes. 4. Journalize the entry to pay the payroll on December 9. (Assume that the company has transferred cash to the Cash-Payroll Bank Account for this payroll.) Round your answers to the nearest cent. GENERAL JOURNAL PAGE DATE DESCRIPTION POST. REF. DEBIT CREDIT 20-- Dec. 9 Cash-Payroll Bank Account Paid salaries for week ended December 7
