Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stark Company has five employees. Employees paid by the hour receive a $15 per hour pay rate for the regular 40-hour workweelk plus one and

image text in transcribedimage text in transcribed

Stark Company has five employees. Employees paid by the hour receive a $15 per hour pay rate for the regular 40-hour workweelk plus one and one-half times the hourly rate for each overtime 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 $118,500 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 percent 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. (Round your answers to 2 decimal places.) FUTA FICA S.S Employee FIT Withholding Employee Plan Medicare Withholding Employee Current Period Gross Pay Cumulative Pay Employee (Excludes Net Pay FICA Employer Medicare Employer Plan Employer Current Period) Pay SIT Pay Gross Pay Withholding SUTA FICA S.S Type Hours Expense $ 2,550.00 Kathleen $ 116,300.00 Salary $ 7,000.00 520.00 102.00 30.50 6,450.00 Salary Anthony 610.00 31.00 61.00 Regular80 132.00 16,100.00 Nichole Overtime10 36.00 Regular80 6,750.00 vertime 122.00 Zoey 33.00 1,095.00 112.00 5,550.00 gular Gracie 32.00 ime S 3,018.00 $0.000.00$ 0.00$ 30.50 $ 151,150.00 Totals $ 0.00 652.00 0.00 0.00 0.00 61.00 b, c, d & 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 all liabilities (except for the net payroll in part c) for this biweekly period View transaction list Journal entry worksheet 2 3 4 5 Record the August 31 journal entry for the accrued biweekly payroll and related liabilities for deductions. Note: Enter debits before credits. Credit Date General Journa Debit Aug 31 View general iournal Record entry Clear entry

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

Accounting

Authors: Carl s. warren, James m. reeve, Philip e. fess

21st Edition

978-0324400205, 324225016, 324188005, 324400209, 9780324225013, 978-0324188004

More Books

Students also viewed these Accounting questions