I just need the answer for the second question, I need it with an hour, is that possible?

Financial Reporting 2 Employee Liabilities Assignment Winter 2016 Due: February 17th This assignment combines several types of employee related liabilities. The project will develop your accounting, excel and communication skills. You will also have the opportunity to develop your critical thinking ability by applying, integrating and extending the knowledge you have gained in class. Assignment You have been hired as an accounting consultant to help set up the year-end entries necessary to account for employee liabilities. Your client, Tate's Bake Shop, began operations on January 2, 2015. It employs 4 individuals who work 8-hour days and are paid hourly and 2 individuals who are paid salary. You should write up your work in a one-page memo with all supporting schedules and calculations included in appendices. Specifically, 1. Tate's Bake Shop would like you to calculate the appropriate payroll journal entries for December 31, 2015. As part of your report, prepare December's payroll worksheet (see below) and make the necessary entries to record (a) the payment of the payroll and (b) to record the payroll tax expenses for December 2015. The federal unemployment tax rate is 0.8% and the state unemployment rate is 1%; both on a maximum of $7,000. Assume a 10% federal income tax rate for all employees. The FICA tax rate is 7.65% for the employee and employer on a maximum of $118,500 per employee. In addition, 1.45% is charged both employer and employee for an employee's wages in excess of $118,500 per employee. You will need to look up and use the appropriate employee and employer tax rates are for Social Security (OASDI) and Medicare (HI) for 2015. (Note that together Social Security and Medicare taxes are frequently referred to as FICA taxes. It refers to the Federal Insurance Contributions Act (FICA) which is the Federal law that requires employers to withhold these amounts.) Name A. Curatola B. Reichert C. Hall D. Park E. Fich F. Linnehan Earnings to 11/30/2015 $ 132,000 47,000 31,800 14,000 6,000 115,000 December Earnings $ 12,000 2,880 2,520 1,820 2,520 12,000 Income Tax Withholding Social Security Medicare FUTA 2. Tate's Bake Shop would like you to evaluate the financial statement impact of the following two options for accounting for vacation and sick days. a. Accrue the cost of compensated absences at rates of pay in effect during the period when earned and accrue sick pay when earned. b. Accrue vacation time at expected future rates of pay without discounting and record paid sick leave only when it is used. SUTA Financial Reporting 2 Employee Liabilities Assignment Winter 2016 Due: February 17th Each employee earns 10 paid vacation days and 6 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows. Year 201 5 Actual Salary Rate $3,000/wk Actual Wage Rate 15.00/hr Vacation Days Used by each Employee 0 Sick Days Used by each Employee 5 Projected Future Pay Rates Used to Accrue Vacation Pay 17.00/hr & 3,500/wk As part of your report, include the suggested journal entries to record compensated absences during 2015 and the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2015 under each method. Conclude by recommending one of the two methods and explaining your recommendation. You may work with a partner or in a team of up to three students. Grading Considerations: Grading will be based primarily on the effort shown for the case and will include the effectiveness of your analysis, and the professional quality of your write-up. Good luck and have fun! Dr. Barbara Grein