McFarlane Industries completed the following transactions during 2016 :

Nov. 1 Made sales of $12,000 . McFarlane estimates that warranty expense is 4 % of sales. (Record only the warranty expense.)

Nov.20 Paid $ 200 to satisfy warranty claims.

Dec. 31 Estimated vacation benefits expense to be $ 2,000 .

Dec.31 McFarlane expected to pay its employees a 5 % bonus on net income after deducting the bonus. Net income for the year is $ 18, 000 .

Journalize the transactions (explanations are not required). (Record debits first, then credits. Exclude explanations from journal entries.)

Nov. 1: Made sales of $ 12,000 . McFarlane estimates that warranty expense is 4 % of sales. (Record only the warranty expense.) Date Accounts and Explanation Debit Credit Nov. 1

Date			Accounts and Explanation	Debit	Credit
Nov. 1

_______________________________________________________________________________

Hal

Stanton

manages a

Frosty Boy

drive-in. His straight-time pay is

$ 9

per hour, with time-and-a-half for hours in excess of 40 per week.

Stanton

's

payroll deductions include withheld income tax of

20

%,

FICA tax, and a weekly deduction of

$ 7

for a charitable contribution to United Way.

Stanton

worked

52

hours during the week.

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For all payroll calculations, use the following tax rates and round amounts to the nearest cent:

Employee:

OASDI:

6.2% on first $ 117,000 earned; Medicare: 1.45% up to $ 200,000 2.35 % on earnings above $ 200,000

.
Employer:	OASDI

6.2% on first $117,000 earned; Medicare: 1.45%on all earnings; FUTA: 0.6% on first $ 7,000 earned; SUTA: 5.4% on first $ 7 000earned.

Requirements

1.	Compute Stanton's gross pay and net pay for the week. Assume earnings to date are

$ 10,000

.
2.	Journalize Frosty Boy's wages expense accrual for

Stanton work. An explanation is not required.

3.	Journalize the subsequent payment of wages to Stanton

.

Requirement 1. Compute Stanton's gross pay and net pay for the week. Assume earnings to date are $10,000

(Round all amounts to the nearest cent.)

Begin by computing

Stanton's

gross pay for the week.

Gross Pay

____________________________________________________________________________

Mexican Restaurant incurred salaries expense of

$ 61,000 for 2016. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries,

$ 15000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company,$ 2,500), life insurance (cost to the company,$ 390),and retirement benefits (cost to the company, 9%of salaries expense).

Journalize Ricardo's expenses for employee benefits and for payroll taxes. Explanations are not required. (Round all amounts to the nearest cent. Record debits first, then credits. Exclude explanations from journal entries.)

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Employee:

OASDI:

6.2% on first $ 117,000

earned; Medicare:

1.45% up to $ 200,000 2.35% on earnings above $ 200,000

.
Employer:	OASDI:

6.2%on first $ 117,000 earned per employee; Medicare: 1.45% on all earnings; FUTA: 0.6%on first $ 7,000 earned per employee; SUTA: 5.4 % on first $ 7,000 earned per employee.

Begin with the entry to accrue Ricardo's employer payroll taxes.

Date			Accounts and Explanation	Debit	Credit