Question
Stark Company has five employees. Employees paid by the hour earn $12 per hour for the regular 40-hour workweek and $17 per hour beyond the
Stark Company has five employees. Employees paid by the hour earn $12 per hour for the regular 40-hour workweek and $17 per hour beyond the 40 hours per week. Hourly employees are paid every two weeks, but salaried employees are paid monthly on the last biweekly payday of each month. FICA Social Security taxes are 6.2% of the first $128,400 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. The company has a benefits plan that includes medical insurance, life insurance, and retirement funding for employees. Under this plan, employees must contribute 5% of their gross income as a payroll withholding, which the company matches with double the amount. Following is the partially completed payroll register for the biweekly period ending August 31, which is the last payday of August. a. Complete this payroll register by filling in all cells for the pay period ended August 31. b, c, d & e. Prepare the August 31 journal entry to: b. Record the accrued biweekly payroll and related liabilities for deductions. c. Record the employers cash payment of the net payroll of part b. d. Record the employers payroll taxes including the contribution to the benefits plan. e. Pay all liabilities (except for the net payroll in part c) for this biweekly period
Current Period Gros Pay FUTA Withholding Cumblative Pary Employee (Excluden Current Period) Employee Net Pay Pay Type Pay Hours Gross Pay SIT Withholding SUTA FICAS Employer Plan Medlare Employee With holding Employee FICA FICA 5.5. Medicare Employer Plan Employer Expense Employer $ 62005 101.50 $ 350 00 62.00 101 50 700.00 5200 104.00 Kathleen 5 128,000.00 Salary $ 7.000.00 $ 3,626 50 Anthony 6,600.00 Salary 1,040.00 $ 2,700.00 580.00 108.00 34.00 138.00 3900 Nichole 80 10 80 Zoey Regular 16,500.00 Overtime Regular 6.550.00 Overtime Regular 5,700.00 Overtime 6 73 128.00 36.00 118.00 35.00 876.00 Gracie 000 $ 62.00 $ 10150 $ 402.00 Totals 5 163,350.00 $ 3.19200 5 724.00 $ 3.626 50 0.00 62 00 101.50 804 00 Record the August 31 journal entry for the accrued biweekly payroll and related liabilities for deductions. Hote: Enter debits before credits. Date General Joumal Debit Eredit Aug 31 Record the August 31 journal entry for the employer's cash payment of the net payroll of part b. Note: Enter debits before credits. Date General Journal Debit Credit Aug 31 Record the employer's payroll tax expense related to the August 31 payroll. Note: Enter debits before credits. Date General Journal Debit Credit Aug 31 Record entry Clear entry View genera Record the employee's benefit expense related to the August 31 payroll. Note: Enter debits before credits. Date General Journal Debit Credit Aug 31 Recordant Clearanto Woonaa Current Period Gros Pay FUTA Withholding Cumblative Pary Employee (Excluden Current Period) Employee Net Pay Pay Type Pay Hours Gross Pay SIT Withholding SUTA FICAS Employer Plan Medlare Employee With holding Employee FICA FICA 5.5. Medicare Employer Plan Employer Expense Employer $ 62005 101.50 $ 350 00 62.00 101 50 700.00 5200 104.00 Kathleen 5 128,000.00 Salary $ 7.000.00 $ 3,626 50 Anthony 6,600.00 Salary 1,040.00 $ 2,700.00 580.00 108.00 34.00 138.00 3900 Nichole 80 10 80 Zoey Regular 16,500.00 Overtime Regular 6.550.00 Overtime Regular 5,700.00 Overtime 6 73 128.00 36.00 118.00 35.00 876.00 Gracie 000 $ 62.00 $ 10150 $ 402.00 Totals 5 163,350.00 $ 3.19200 5 724.00 $ 3.626 50 0.00 62 00 101.50 804 00 Record the August 31 journal entry for the accrued biweekly payroll and related liabilities for deductions. Hote: Enter debits before credits. Date General Joumal Debit Eredit Aug 31 Record the August 31 journal entry for the employer's cash payment of the net payroll of part b. Note: Enter debits before credits. Date General Journal Debit Credit Aug 31 Record the employer's payroll tax expense related to the August 31 payroll. Note: Enter debits before credits. Date General Journal Debit Credit Aug 31 Record entry Clear entry View genera Record the employee's benefit expense related to the August 31 payroll. Note: Enter debits before credits. Date General Journal Debit Credit Aug 31 Recordant Clearanto WoonaaStep by Step Solution
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