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Journalize these transactions: On April 27 Allied industry pays its employees their monthly salaries. The gross pay is 250,000, employee income tax is 26%, employee
Journalize these transactions: On April 27 Allied industry pays its employees their monthly salaries. The gross pay is 250,000, employee income tax is 26%, employee social tax is 12%. The employer payroll rate is 32% Attached file is the solution of my professor. It is a different solution from what I have asked yesterday here. Could you pls take a look if that attached solution is correct, please explain to me: Why must calculate Social security first? Then (gross pay - social security tax) x income tax rate? Can we calculate first Income tax first? He does an other separate entry for Employer payroll tax. Since the first entry, sum of them ( social security + income tax + salary) equal to 254,000 already, Where & how 254,000 * 32% of employer payroll tax come from? Because if we sum 4 of them, it s over gross pay 254,000. Thank you very much. Homenet Page Layout Formdas ta Data Review mova DF Sert & Find & Clear FiterSelet" formatting as Table syles Cels Debit Credit Debited account Credited account (254000-Security payable)"26% 58,115.20 30,480.00 (254000*12%) 165,404.80 remain after deduct that abve 2 254,000.00 Employee income tax payable Social security payable Salary payable Salary expense Employer payroll tax expens Social security payable Employee income tax payab Cash Social security payable Cash Salary payable 81,280.00 81,280.00 254000"32% 58,115.20 58,115.20 111,760.00 111,760.00 165,404.80 165,404.80 Cash
Journalize these transactions: On April 27 Allied industry pays its employees their monthly salaries. The gross pay is 250,000, employee income tax is 26%, employee social tax is 12%. The employer payroll rate is 32%
Attached file is the solution of my professor. It is a different solution from what I have asked yesterday here. Could you pls take a look if that attached solution is correct, please explain to me:
Why must calculate Social security first? Then (gross pay - social security tax) x income tax rate? Can we calculate first Income tax first?
He does an other separate entry for Employer payroll tax. Since the first entry, sum of them ( social security + income tax + salary) equal to 254,000 already, Where & how 254,000 * 32% of employer payroll tax come from? Because if we sum 4 of them, it s over gross pay 254,000.
Thank you very much.
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