Question
Transactions for May: continued May 26 Charlie's opened a charge account at a local gas station at the beginning of May to be payed
Transactions for May: continued May 26 Charlie's" opened a charge account at a local gas station at the beginning of May to be payed at the end of each month by check. May's charges totaled $ 80.00 and are paid. May 26 May's electric bill of $325.00 was paid. May 26 May's water bill of $45.00 was paid. May 26 May's telephone bill of $125.00 was paid. May 27 Received payment in full from "Ed's Pools" for Invoice #1003. May 27 Cash sales for the day totaled $4,770.00 plus sales tax. May 28 May 29 May 30 May 31 Ivan Cowen, the Shop Foreman, is paid. He worked 51.50 hours this pay period. Since this is the last payday of May, it is necessary to calculate the employer's payroll taxes and record the entry. Instructions to perform this task is as follows: Determine the employer's Social Security and Medicare taxes by simply matching what was withheld for the month for both taxes. In other words the employer must duplicate what was withheld from the employees for each of these two taxes. Also, the employee must recognize both the federal and state unemployment liabilities in this entry. The state rate is 3.1% and the federal rate is 0.8%. While both of these taxes are based on taxable ceilings of year-to-date gross wages, neither tax (ferderal or state) ceiling will be exceed- ed during the first three months of payroll, therefore consider all wages as unemployment taxable. After determing the tax amounts, record all four employer taxes as individual liabilities, and show the total sum of all four amounts as "Payroll Tax Expense". A customer purchases fencing materials and charges them on his Visa Card, $ 1379.00 plus tax. (See May 03) A fence is installed for a customer, Jeff Tillis, on account. The contract amount is $ 3,518.00 plus tax, terms net 30 days, Invoice # 1005. Mr. Tillis from the May 30 sale is dissatisfied with part of the installation. Charlie convinces him that due to the lay of his property, there was no other reasonable way for the fence to be installed. But to keep the customer happy, Charlie makes a "sales allowance" in the amount of $ 250. May 31 A trial balance is prepared.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started