Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following information for Gray Company for the payroll of April 9: (Click the icon to view the payroll.) (Click the icon to view

image text in transcribed

image text in transcribed

Consider the following information for Gray Company for the payroll of April 9: (Click the icon to view the payroll.) (Click the icon to view the payroll tax expense at the previous earnings.) If L. Peter earned $2,100 for the week instead of $290, what effect would this change have on the total payroll tax expense? (Round to the nearest cent as needed.) FICA - OASDI FICA - Medicare FUTA SUTA Total Total Company Payroll Taxes if L. Peter Earns $260/week $ $ 121.83 28.49 9.90 84.15 244.37 Total Company Payroll Taxes if L. Peter Earns $2,100/week Data table Employee R. Frank G. Jill L. Peter Cumulative Earnings Before Weekly Payroll 3,500 $ 6,300 7,800 Gross Pay for the Week $ 950 725 290 The FICA tax rate for OASDI is 6.2% on the first $127,200 earned, and Medicare is 1.45% on all earnings. Federal unemployment tax is 0.6% on the first $7,000 earned by each employee. The SUTA tax rate for Gray Company is 5.1% on the first $7,000 of employee earnings for state unemployment purposes. X At the end of April 201X, the total amount of OASDI, $550, and Medicare, $220, was withheld as tax deductions from the employees of Lucky, Inc. Federal income tax of $2,950 was also deducted from their paychecks. Lucky is classified as a monthly depositor of Form 941 taxes. Indicate when this payroll tax deposit is due and provide a general journal entry to record the payment. Since Lucky Inc. is a monthly depositor, its deposits will be due Complete the general journal entry to record the payment. (Record debits first, then credits. Exclude explanations from journal entries.) Journal Entry Date Accounts PR Dr. C Cr

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Financial Management Federal Information System Controls Audit Manual

Authors: U.S. Government Accountability Office

1st Edition

1289168172, 978-1289168179

More Books

Students also viewed these Accounting questions