Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Turn this information into an excel sheets with the excel formulas being shown P12.4 (LO 1) (Payroll Tax Entries) The following is a payroll sheet

Turn this information into an excel sheets with the excel formulas being shown
image
image

P12.4 (LO 1) (Payroll Tax Entries) The following is a payroll sheet for Otis Imports for the month of September 2025. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% FICA tax on employee and employer on a maximum of $142,800. In addition, 1.45% is charged both employer and employee for an employee's wages in excess of $142,800 per employee. Income September Tax Unemployment Tax Name B.D. Williams $ Earnings to Aug. 31 Earnings Withholding FICA State Federal 6,800 $ 800 D. Raye 6,500 700 K. Baker 7,600 1,100 F, Lopez 13,600 1,900 A. Daniels 131,300 13,000 B. Kingston 136,300 16,000 Instructions a. Complete the payroll sheet and make the necessary entry to record the payment of the payroll. b. Make the entry to record the payroll tax expenses of Otis Imports. c. Make the entry to record the payment of the payroll liabilities created. Assume that the company pays all payroll liabilities at the end of each month.

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 Principles

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

10th Edition

1119491630, 978-1119491637, 978-0470534793

More Books

Students also viewed these Accounting questions