Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 blweekly 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 $7000 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 employer's cash payment of the net payroll of part b. d. Record the employer's payroll taxes including the contribution to the benefits plan. e. Pay all liabilities (except for the net payroll in part c) for this blweekly period. es Complete this question by entering your answers in the tabs below. Req A Reg tot Complete this payroll register by filling in all cells for the pay period ended August 31. (Round your answers to 2 decimal places.) FIT FUTA Current Perlod Gross Pay Withholding Cumulative Pay Employee (Excludes Current Period) Pay Type Pay Gross Pay SIT Withholding SUTA Hours $ 7,000.00 127,400.00 Salary Kathleen FICA FICAS.S. Employse Plan Medicare Employee Withholding Employee Employee Net Pay FICA FICA S.S Medicare Employer Plan Employer Expense Employer $ 62.00 $ 101.505 350.00 101.50 62.00 3.626.50 700.00 60.76 14.21 49,00 700.03 60.78 14.21 98.00 69.01 16.141 55.65 81321 69,01 16.14 111.30 A OF $ $ 2,400.00 460.00 98.00 980.00 4.20 37.80 Anthony 6,300.00 Salary 28.00 12600 33.00 80 9 Regular 15,900.00 Overtime Nichole an 400ml HEEP D Req A Req B to E Complete this payroll register by filling in all cells for the pay period ended August 31. (Round your answers to 2 decimal places. Current Period Gross Pay FIT Withholding FUTA FICA S.S. Employee Cumulative Pay Employee (Excludes Current Period) Pay Type Pay Hours Gross Pay With Holding SUTA Kathleen $ 127.400.00 Salary $ 7,000.00 FICA S.S. Employer $ 62.00 62.00 60.76 60.76 69.01 69.01 Anthony 6,300.00 Salary 980.00 4.20 37.80 FICA Employee Plan Medicare Employee Withholding Employee FICA Net Pay Medicaro Employer Plan Employer Expense $ 101.50 $ 350.00 $ 101.50 700.00 3,628.50 14.21 49.00 706.03 14.21 98.00 16.14 55.65 813.21 16.14 111.30 15.15 52.251 766,81 15.15 104.50 13.40 46.20 672.11 13.40 92.40 80 $ 2,400.00 460.00 96.00 28.00 126.00 33.00 116.00 30.00 106.00 29.00 Nichole 9 Regular 15,900.00 Overtime Regular 6,600.00 Overtime Regular 5,400.00 Overtime Zoey 80 5 77 2.40 378.00 9.60 64.79 64.79 57.29 57.29 924.00 Gracie 378.00 $ 2,844.00 $ 16.20 $ 313.85$ 100.40 $ 553.10 $ Totals $ 161,600.00 6,584.66 580.00 793 80 313.85 160.40 1,106.20 RA Req B to E> Reg A Req B to E Prepare the August 31 journal entry to: (Round your answers to 2 decimal places.) b. Record the accrued biweekly payroll and related liabilities for deductions. c. Record the employer's cash payment of the net payroll of part b. d. Record the employer's payroll taxes including the contribution to the benefits plan. e. Pay ail liabilities (except for the net payroll in part c) for this biweekly period. Show les View transaction list Journal entry worksheet 1 Record the August 31 journal entry for the accrued biweekly payroll and related liabilities for deductions. Note: Enter debits before credits. Debit Credit Date Aug 31 11,062.00 General Journal Salaries (or Wages) expense FICA-Social sec, taxes payable FICA-Medicare taxes payable Employee fed, inc. taxes payable Employee state inc. taxes payable Employee benefits plan payable Salaries (or Wages) payable 313.84 160.40 2,844.00 580.00 579.10 6,584.66

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mylab Accounting With Pearson -- Access Card -- For Managerial Accounting

Authors: Karen W. Braun, Wendy M. Tietz

5th Edition

0134161645, 9780134161648

More Books

Students also viewed these Accounting questions

Question

b. Did you suppress any of your anger? Explain.

Answered: 1 week ago