Question
Please help me fix this and please let me know why my answer is wrong. Problem 11.2A Computing employer's social security tax, Medicare tax, and
Please help me fix this and please let me know why my answer is wrong.
Problem 11.2A Computing employer's social security tax, Medicare tax, and unemployment taxes. LO 11-2, 11-3
A payroll summary for Mark Consulting Company, owned by Mark Fronke, for the quarter ending June 30, 2019, appears below. The firm made the required tax deposits as follows
- For April taxes, paid on May 15.
- For May taxes, paid on June 17.
Date Wages Paid | Total Earnings | Social Security Tax Deducted | Medicare Tax Deducted | Income Tax Withheld | ||||||||||
April | 8 | $ | 2,232.00 | $ | 138.38 | $ | 32.36 | $ | 221.00 | |||||
15 | 2,320.00 | 143.84 | 33.64 | 228.00 | ||||||||||
22 | 2,232.00 | 138.38 | 32.36 | 221.00 | ||||||||||
29 | 2,276.00 | 141.11 | 33.00 | 225.00 | ||||||||||
$ | 9,060.00 | $ | 561.71 | $ | 131.36 | $ | 895.00 | |||||||
May | 5 | $ | 2,188.00 | $ | 135.66 | $ | 31.73 | $ | 217.00 | |||||
12 | 2,232.00 | 138.38 | 32.36 | 221.00 | ||||||||||
19 | 2,232.00 | 138.38 | 32.36 | 221.00 | ||||||||||
26 | 2,276.00 | 141.11 | 33.00 | 225.00 | ||||||||||
$ | 8,928.00 | $ | 553.53 | $ | 129.45 | $ | 884.00 | |||||||
June | 2 | $ | 2,320.00 | $ | 143.84 | $ | 33.64 | $ | 228.00 | |||||
9 | 2,232.00 | 138.38 | 32.36 | 221.00 | ||||||||||
16 | 2,276.00 | 141.11 | 33.00 | 225.00 | ||||||||||
23 | 2,232.00 | 138.38 | 32.36 | 221.00 | ||||||||||
30 | 2,188.00 | 135.66 | 31.73 | 217.00 | ||||||||||
$ | 11,248.00 | $ | 697.37 | $ | 163.09 | $ | 1,112.00 | |||||||
Total | $ | 29,236.00 | $ | 1,812.61 | $ | 423.90 | $ | 2,891.00 | ||||||
|
Social security | 6.2 | percent |
Medicare | 1.45 | |
FUTA | 0.6 | |
SUTA | 5.4 | |
|
Required:
- Using the tax rates given above, and assuming that all earnings are taxable, make the general journal entry on April 8, 2019, to record the employers payroll tax expense on the payroll ending that date.
- Prepare the entries in general journal form to record deposit of the employee income tax withheld and the social security and Medicare taxes (employee and employer shares) on May 15 for April taxes and on June 17 for May taxes.
(For all requirements round your answers to 2 decimal places.)
Side note: Green is correct and red is wrong.
You can only use these terms below:
Cash
Employee income tax payable
Federal unemployment tax payable
Interest expense
Interest payable
Medicare tax payable
Notes payable
Office salaries expense
Payroll taxes expense
Petty cash
Prepaid expenses
Prepaid worker's compensation insurance
Rent expense
Salaries expense
Salaries payable
Sales salaries expense
Sales tax payable
Social security tax payable
State unemployment tax payable
Utilities expense
Workers' compensation insurance expense
Workers' compensation insurance payable
Answer is not complete. Date General Journal Debit Credit April 08, 2019 304.67 Payroll taxes expense Social security tax payable Medicare tax payable Federal unemployment tax payable State unemployment tax payable 138.38 32.36 13.39 120.53 May 15, 2019 Social security tax payable Medicare tax payable Employee income tax payable Federal unemployment tax payable State unemployment tax payable Cash 1,123.44 262.74 895.00 54.36 489.24 X 2,824.78 X June 17, 2019 1,107.07 Social security tax payable Medicare tax payable Employee income tax payable Federal unemployment tax payable State unemployment tax payable Cash 258.91 884.00 53.57 482.11 % 2,785.66 xStep 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