Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I'm struggling a little bit with this accounting question regarding journalizing payroll. I've answered the question (journaled the given entries), but I was wondering if

I'm struggling a little bit with this accounting question regarding journalizing payroll. I've answered the question (journaled the given entries), but I was wondering if someone could check them. I've attached a document with all of the needed information and my journal entries.image text in transcribed

Using the earnings data developed in E3-1, and assuming that this was the 50th week of employment for Rozow and the previous earnings to date were $99,800, prepare the journal entries for the following: a. The week's payroll b. Payment of the payroll c. The employer's payroll taxes E3-1 Data: Paid $20/hr. Paid $30/hr. for overtime Paid $40 for work on Sundays and holidays Regular time is 40 hours a week, 5 days per week Premium overtime is charged to Factory Overhead Employer taxes are charged to Factory Overhead Job or Indirect Labor 007 009 Indirect Total Su. Tu. W Th. F 5 3 4 4 M 5 3 3 5 5 6.5 6 5 8 8 8 11.5 Total reg. pay = 40 hours; $800 Total overtime pay = 13 hours; $390 Total Sunday pay = 4 hours = $160 Total weekly pay = $1350 Assumed Payroll Tax Rates: FICA - 8% of the first $100,000 of earnings SUTA -- 4% of the first $8,000 of earnings FUTA - 1% of the first $8,000 of earnings Federal Income Tax - 10% of gross earnings My answers: 11 Sa. Total 6.5 6.5 24 22.5 10.5 57 a. Payroll 1,350.00 FICA Tax Payable Employees Income Tax Payable Wages Payable (Recorded payroll) 16.00* 135.00 1,199.00 *Employee was only $200 short of the $100,000 limit subject to FICA tax so that was all that needed to be taxed ** Employee had already met SUTA and FUTA limitations earlier in the year so those didn't need to be taxed b. Wages Payable Cash (Paid payroll) 1,199.00 1,199.00 c. Factory Overhead 16.00 FICA Tax Payable 16.00 (To recognize payroll taxes)

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

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

14th Edition

978-0132960649, 132960648, 132109174, 978-0132109178

More Books

Students also viewed these Accounting questions