Question
I could so use help if someone could help this would be awesome!!!! Ergo Company has one employee who is paid a salary of $8,500
I could so use help if someone could help this would be awesome!!!!
Ergo Company has one employee who is paid a salary of $8,500 per month. Payroll information for the first month of the year is:
Federal and state income tax withheld | $1,275 |
FICA (social security and Medicare) | 7.65% |
Federal unemployment (FUTA and SUTA) tax rate (on the 1st $7,000 of wages) | 6.2% |
Insurance Premiums (paid by Employees) | $400 |
Part I: Prepare Ergos journal entry to record the first months salary expense and employee withholdings. Payroll tax expense will be recorded in part 2.
Part 2: Prepare Ergos journal entry to record employer payroll taxes for the first months payroll.
Notes Receivable
On September 1, 2016, Hare Today pet-supply store Co. borrowed $9,000 from Gone Tomorrow Bank, signing a 6-month, 4-percent note. Interest is to be paid at maturity. Hare Today and Gone Tomorrow both have a December 31 year-end.
1. Record the journal entry for the transaction for Hare Today on September 1, 2016.
2. Record the appropriate adjusting entry related to the note by Hare Today on December 31, 2016.
3. Record the journal entry for the receipt of the amount due to Hare Today at the notes maturity on March 1, 2017.
Notes Payable
On September 1, 2016, Hare Today pet-supply store Co. borrowed $9,000 from Gone Tomorrow Bank, signing a 6-month, 4-percent note. Interest is to be paid at maturity. Hare Today and Gone Tomorrow both have a December 31 year-end.
1. Record the journal entry for the transaction for Gone Tomorrow on September 1, 2016.
2. Record the appropriate adjusting entry related to the note by Gone Tomorrow on December 31, 2016.
3. Record the journal entry for the payment of the amount due to Gone Tomorrow at the notes maturity on March 1, 2017.
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