Yemi??s Drug Store has four employees who are paid on an hourly basis plus time-and a- half
Question:
Yemi??s Drug Store has four employees who are paid on an hourly basis plus time-and a- half for all hours worked in excess of 40 a week. Payroll data for the week ended February 15, 2012, are shown below.
The following tax rates are applicable: FICA 8%, state income taxes 3%, state unemployment taxes 5.4%, and federal unemployment 0.8%. The first three employees are sales clerks (store wages expense). The fourth employee performs administrative duties (office wages expense).Instructions(a) Prepare a payroll register for the weekly payroll.(b) Journalize the payroll on February 15, 2012, and the accrual of employer payroll taxes.(c) Journalize the payment of the payroll on February 16, 2012.(d) Journalize the remittance to the Federal Reserve bank on February 28, 2012, of the FICA and federal income taxes payable to thegovernment.
Step by Step Answer:
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso