Answered step by step
Verified Expert Solution
Question
1 Approved Answer
January 8, 2021 is the end of the first payroll period for ABC, Inc. Data for the payroll is as follows: Office salaries Sales salaries
January 8, 2021 is the end of the first payroll period for ABC, Inc. Data for the payroll is as follows: Office salaries Sales salaries FICA - Social Security Withheld at 6.2% FICA - Medicare Taxes Withheld at 1.45% Federal Income Taxes (FIT) Withheld Medical Insurance Premium Withheld Union Dues Withheld 22,760.00 65,840.00 5,493.20 1,284.70 12,860.00 1,340.00 840.00 Note 6.2%= .062 Note 1.45% = .0145 Employer's portion of FICA-Social Security at 6.2% Employer's portion of FICA-Medicare at 1.45% 5,493.20 1,284.70 Unemployment (State) Insurance Premium at 5.4% Unemployment (Federal) Insurance Premium at .6% 4,784.40 531.60 Note 5.4%= .054 Note:.6%=.006 Note: Companies do not round to the nearest dollar with respect to payroll. All calculations are rounded to the nearest penny. a. Using the attached T-account template below (or prepare an "equation" presentation using a spreadsheet format), prepare the entries to recognize the following events. Recognition and payment of the payroll dated 1/8/21 b. Recognition of the employer's obligation (payment is not due for 3 days) for FICA. Recognition of the employer's insurance obligation (payment is not due for 10 days) for state and federal unemployment insurance. c. January 8, 2021 is the end of the first payroll period for ABC, Inc. Data for the payroll is as follows: Office salaries Sales salaries FICA - Social Security Withheld at 6.2% FICA - Medicare Taxes Withheld at 1.45% Federal Income Taxes (FIT) Withheld Medical Insurance Premium Withheld Union Dues Withheld 22,760.00 65,840.00 5,493.20 1,284.70 12,860.00 1,340.00 840.00 Note 6.2%= .062 Note 1.45% = .0145 Employer's portion of FICA-Social Security at 6.2% Employer's portion of FICA-Medicare at 1.45% 5,493.20 1,284.70 Unemployment (State) Insurance Premium at 5.4% Unemployment (Federal) Insurance Premium at .6% 4,784.40 531.60 Note 5.4%= .054 Note:.6%=.006 Note: Companies do not round to the nearest dollar with respect to payroll. All calculations are rounded to the nearest penny. a. Using the attached T-account template below (or prepare an "equation" presentation using a spreadsheet format), prepare the entries to recognize the following events. Recognition and payment of the payroll dated 1/8/21 b. Recognition of the employer's obligation (payment is not due for 3 days) for FICA. Recognition of the employer's insurance obligation (payment is not due for 10 days) for state and federal unemployment insurance. c
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started