The following Payroll Journal entries for Oct. 15 were made by your predecessor. For FICA tax, assume that the social security rate is 6.0% and the Medicare rate is 1.5%. The state and federal unemployment tax rates are 5.4% and 0.8%, respectively. The company offers 401k plans to employees. Review the journal entries, then answer the questions that follow.

PAGE 32

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1	Oct. 15	Sales Salaries Expense		145,500.00
2		Officers Salaries Expense		523,800.00
3		Office Salaries Expense		97,000.00
4		Factory Wages Expense		203,700.00
5		Social Security Tax Payable			58,200.00
6		Medicare Tax Payable			14,550.00
7		Employees Federal Income Tax Payable			174,600.00
8		Medical Insurance Payable			106,700.00
9		Retirement Contributions Payable			145,500.00
10		Salaries Payable			470,450.00
11	15	Payroll Tax Expense		74,207.00
12		Social Security Tax Payable			58,200.00
13		Medicare Tax Payable			14,550.00
14		Federal Unemployment Tax Payable			188.00
15		State Unemployment Tax Payable			1,269.00
16	15	Pension Expense		87,300.00
17		Cash			87,300.00

In order to confirm the previous clerks payroll calculations, you have been asked to supply the following amounts based on your review of the payroll entries. These amounts will be checked against the company records and investigated further if necessary.

1. Determine the payroll amount subject to federal and state unemployment taxes in this payroll.

Points:

0 / 1

2. What is the total payroll for Copperfield and Company shown in these journal entries?

Points:

0 / 1

3. What is Copperfield and Companys share of FICA taxes in this payroll?

Points:

0 / 1

4. How much has Copperfield and Company contributed to employee 401k plans in this payroll?