Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The employer pays 60% of the cost of medical insurance and 60% of the cost of medical insurance for its employees. (As presented in class,

The employer pays 60% of the cost of medical insurance and 60% of the cost of medical insurance for its employees. (As presented in class, economists tell us that this is for legal purposes only. In actuality, employees have to receive lower money income for everything the employer pays on behalf of the employee, because the employer can afford to pay only so much for labor.)

Salaries subject to federal and state unemployment taxes are $50,000. Assume that the SUTA tax rate is 5.4% and the FUTA tax rate is 0.6%.

Required:

Make the correct journal entries for

Part a. (ten points) recording the accrued payroll, including deductions from employees gross pay. If no journal entry should be made, explicitly say that no journal entry should be made.

Part b. (four points) paying the net payroll to employees. If no journal entry should be made, explicitly say that no journal entry should be made.

Part c. (twelve points) accruing employer portion of FICA, SUTA, and FUTA taxes. Assume that the employer portion of FICA is exactly equal to what was withheld from employees. If no journal entry should be made, explicitly say that no journal entry should be made.

Part d. (four points) accruing employer portion of fringe benefits (medical insurance and life insurance). If no journal entry should be made, explicitly say that no journal entry should be made.

Part e. (four points) payment of each of the federal and state depositaries for taxes mentioned above. If no journal entry should be made, explicitly say that no journal entry should be made.

Part f. (four points) payment of the total amount(s) due to the insurance company or companies providing the medical insurance and life insurance coverage. If no journal entry should be made, explicitly say that no journal entry should be made.

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_2

Step: 3

blur-text-image_3

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

Applications Of Accounting Information Systems

Authors: David M. Shapiro

1st Edition

194999158X, 9781949991581

More Books

Students also viewed these Accounting questions

Question

2. What is the meaning and definition of Banking?

Answered: 1 week ago

Question

3.What are the Importance / Role of Bank in Business?

Answered: 1 week ago

Question

=+5. How can you show them their personal benefits?

Answered: 1 week ago

Question

=+7. How does it enhance their lifestyle?

Answered: 1 week ago