Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stark Company has five employees. Employees paid by the hour earn $10 per hour for the regular 40 -hour workweek and $15 per hour beyond

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Stark Company has five employees. Employees paid by the hour earn $10 per hour for the regular 40 -hour workweek and $15 per hour beyond the 40 hours per week. Hourly employees are paid every two weeks, but salarled employees are paid monthly on the last biweekly payday of each month. FICA Soclal Securlty taxes are 6.2% of the first $137,700 pald 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, Iffe 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 partlally completed payroll reglster for the biweekly perlod ending August 31 , which is the last payday of August. a. Complete this payroll register by filling in all cells for the pay perlod ended August 31. Prepare the August 31 journal entry to: b. Record the accrued biweekly payroll and related llabilities 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 contrlbution to the benefits plan. e. Pay all llabilitles (except for the net payroll in part c) for this biweekly perlod. Complete this question by entering your answers in the tabs below. Journal entry worksheet 5 Record the August 31 journal entry for the accrued biweekly payroll and related liabilities for deductions. Note: Enter debits before credits. Journal entry worksheet 5 Record the August 31 journal entry for the employer's cash payment of the net payroll of part b. Note: Enter debits before credits. Journal entry worksheet 2 Record the employer's payroll tax expense related to the August 31 payroll. Note: Enter debits before credits. Journal entry worksheet

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

Management Accounting For Decision Makers

Authors: Dr Peter Atrill, Eddie McLaney

6th Edition

0273731521, 9780273731528

More Books

Students also viewed these Accounting questions