On January 8, the end of the first weekly pay period of the year, Regis Company's employees earned...

Question

On January 8, the end of the first weekly pay period of the year, Regis Company's employees earned $21,760 of office salaries and $60,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $13,660 of federal income taxes, $1,380 of medical insurance deductions, and $800 of union dues. No employee earned more than $7,000 in this first period.
Prepare the journal entry to record Regis Company's January 8 employee payroll expenses and liabilities.
Prepare the journal entry to record Regis’s employer payroll taxes resulting from the January 8 payroll. Regis’s state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%. (Round your answers to 2 decimal places.)
1) Employees' FICA Withholdings for Social Security
    Employee
    Earnings Subject to Tax
    Tax Rate
    Tax Amount


    Tax Rate





    Dali





    Trey





    Kiesha





    Chee







    Total










2) Employees' FICA Withholdings for Medicare
    Employee
    Earnings Subject to Tax
    Tax Rate
    Tax Amount


    Tax Rate





    Dali





    Trey





    Kiesha





    Chee







    Total










3) Employer's FICA Taxes for Social Security
    Employee
    Earnings Subject to Tax
    Tax Rate
    Tax Amount


    Tax Rate





    Dali





    Trey





    Kiesha





    Chee







    Total










4) Employer's FICA Taxes for Medicare
    Employee
    Earnings Subject to Tax
    Tax Rate
    Tax Amount


    Tax Rate





    Dali





    Trey





    Kiesha





    Chee







    Total










5) Employer's FUTA Taxes
    Employee
    Earnings Subject to Tax
    Tax Rate
    Tax Amount


    Tax Rate





    Dali





    Trey





    Kiesha





    Chee







    Total









6) Employer's SUTA Taxes
    Employee
    Earnings Subject to Tax
    Tax Rate
    Tax Amount


    Tax Rate





    Dali





    Trey





    Kiesha





    Chee







    Total










7) Each Employee's Net (take-home) Pay
    Employee
    Dali
    Trey
    Kiesha
    Chee
    Total
    Gross Pay
    $4,300.00
    $2,800.00
    $1,600.00
    $1,600.00
    $10,300.00
    Income tax withholding
    511.00
    330.00
    53.00
    42.00
    936.00
    FICA - Social Security





    FICA - Medicare





    Health Insurance





    Net Pay













8) Employer’s total payroll-related expense for each employee.
    Employee
    Dali
    Trey
    Kiesha
    Chee
    Total
    Gross Pay
    $4,300.00
    $2,800.00
    $1,600.00
    $1,600.00
    $10,300.00
    FICA - Social Security





    FICA - Medicare





    FUTA





    SUTA





    Health Insurance





    Pension





    Total Payroll Expense

ch-9-exercise-problems-acct-dedfvx1u.docx

Sultana · Accepted Answer

3-5
	3)
			Principal 	x	Rate	x	Time	 =	Interest
		Interest to be accrued in Year 1	24,000	x	8%	x	33/360		176
	4)
			Principal 	x	Rate	x	Time	 =	Interest
		Interest to be accrued in Year 1	24,000	x	8%	x	27/360		144
	5)
	Date	Particulars	Debit		Credit
	20-Apr	Merchandise Inventory	35,000
		Accounts payable			35,000
	19-May	Accounts payable	35,000
		Cash			- 0
		Notes payable			35,000
	8-Jul	Cash	66,000
		Notes payable			66,000
	17-Aug	Notes payable	35,000
		Interest expense	875.00
		Cash			35,875.00
	5-Nov	Notes payable	66,000
		Interest expense	2,420
		Cash			68,420
	28-Nov	Cash	24,000
		Notes payable			24,000
	31-Dec	Interest expense	176
		Interest payable			176
	27-Jan	Notes payable	24,000
		Interest payable	176
		Interest expense	144
		Cash			24,320
6
	1.1	Tax	Earning	Tax rate	Amount
		FICA - Social Security	82,600	6.20%	5,121.20
		FICA - Medicare	82,600	1.45%	1,197.70
		FUTA	82,600	0.60%	495.60
		SUTA	82,600	5.40%	4,460.40
	1.2	Accounts	Debit	Credit
		Office salaries	21,760
		Sales salaries	60,840
		FICA - Social security		5,121.20
		FICA - Medicare		1,197.70
		Federal income tax withheld		13,660.00
		Medicare insurance 		1,380.00
		Union dues		800.00
		Salaries payable		60,441.10
	2	Accounts	Debit	Credit
		Payroll expense (NET)	11,274.90
		FICA - Social security		5,121.20
		FICA - Medicare		1,197.70
		FUTA		495.60
		SUTA		4,460.

On January 8, the end of the first weekly pay period of the year, Regis Company's employees earned $21,760 of office salaries and $60,840 of sales salaries. Withholdings from the employees' salaries...

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