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JOurnalize Purchased 5 racing suits from Sparcoal $5,300 ($1,060 each), terms 2/10, n/60, for resale purposes, on account, plus total shipping costs of $25.00. HPR
JOurnalize
Purchased 5 racing suits from Sparcoal $5,300 ($1,060 each), terms 2/10, n/60, for resale purposes, on account, plus total shipping costs of $25.00. | |||
HPR withholds taxes from its employees' wages and salaries, accrual and payment of a $6,000 (gross) payroll included the following: | |||
Social Security (FICA) Tax (Use 6.2% of gross wages) | |||
Federal Taxes | $1,200 | ||
Medicare Taxes (Use 1.45% of gross wages) | |||
State Taxes (Use $2.7% of gross wages | |||
City Taxes (Use 2% of gross wages) | |||
Combine the employee taxes withheld activities into one account, Employee Taxes Withheld Payable. | |||
Accrue employer tax, $459 (related to August 18th payroll). These taxes include employer portion of FICA and Medicare tax and state and Federal unemployment tax. Use Employer Tax Payable account for the total employer payroll taxes. | |||
Paid Sparcoal for August 10 in full. | |||
Sold 7 racing suits to Indy Mania Racing Team on account for $2,100 each. HPR uses a perpetual inventory system for its merchandise inventory sales and determines costs using first in-first out costing method. Include your supporting calculations in the "Supporting Assumptions and Calculations" schedule. |
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