HomeworkLib
Question

The payroll of Ivanhoe Company for September 2016 is as follows. Total payroll was $444,000, of...

The payroll of Ivanhoe Company for September 2016 is as follows.

Total payroll was $444,000, of which $108,000 is exempt from Social Security tax because it represented amounts paid in excess of $118,500 to certain employees. The amount paid to employees in excess of $7,000 was $394,000. Income taxes in the amount of $79,200 were withheld, as was $9,600 in union dues. The state unemployment tax is 3.5%, but Ivanhoe Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee’s wages to $118,500 and 1.45% in excess of $118,500. No employee for Ivanhoe makes more than $125,000. The federal unemployment tax rate is 0.8% after state credit.

Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1
Salaries and Wage Expense 444000
      Federal Income Taxes Payable 79200
      FICA Taxes Payable 27270 =(444000-108000)*7.65%+(108000*1.45%)
      Union Dues Payable 9600
      Cash 327930
Payroll Tax Expense 28270
      FICA Taxes Payable 27270 =(444000-108000)*7.65%+(108000*1.45%)
     Federal Unemployment Tax payable 400 =(444000-394000)*0.8%
     State Unemployment Tax payable 600 =(444000-394000)*(3.5%-2.3%)
0 0
Add a comment
Know the answer?
Add Answer to:
The payroll of Ivanhoe Company for September 2016 is as follows. Total payroll was $444,000, of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • The payroll of Swifty Company for September 2016 is as follows. Total payroll was $446,000, of...

    The payroll of Swifty Company for September 2016 is as follows. Total payroll was $446,000, of which $106,000 is exempt from Social Security tax because it represented amounts paid in excess of $118,500 to certain employees. The amount paid to employees in excess of $7,000 was $400,000. Income taxes in the amount of $78,700 were withheld, as was $8,900 in union dues. The state unemployment tax is 3.5%, but Swifty Company is allowed a credit of 2.3% by the state...

  • xercise 13-6 The payroll of Swifty Company for September 2016 is as follows. Total payroll was...

    xercise 13-6 The payroll of Swifty Company for September 2016 is as follows. Total payroll was $446,000, of which $106,000 is exempt from Social Security tax because it represented amounts paid in excess of $118,500 to certain employees. The amount paid to employees in excess of $7,000 was $400,000. Income taxes in the amount of $78,700 were withheld, as was $8,900 in union dues. The state unemployment tax is 3.5%, but Swifty Company is allowed a credit of 2.3% by...

  • The payroll of Cullumber Company for September 2019 is as follows. Total payroll was $458,000, of...

    The payroll of Cullumber Company for September 2019 is as follows. Total payroll was $458,000, of which $112,000 is exempt from Social Security tax because it represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 (the maximum for both federal and state unemployment tax) was $416,000. Income taxes in the amount of $84,100 were withheld, as was $9,200 in union dues. The state unemployment tax is 3.5%, but Cullumber Company...

  • The payroll of Windsor Company for September 2016 is as follows. al payroll was $492,000, of...

    The payroll of Windsor Company for September 2016 is as follows. al payroll was $492,000, of which $120,000 is exempt from Social Security tax because it represented amounts paid in excess of $118,500 to certain employees. The amount paid to employee excess of 7,000 was $436,000. Income taxes in the amount of $73,800 were withheld, as was $8,700 in union dues. The state unemployment tax is 3.5%, but Windsor Company is allowed a credit of 2.3% by the state for...

  • The payroll of Marigold Company for September 2019 is as follows. Total payroll was $502,000, of...

    The payroll of Marigold Company for September 2019 is as follows. Total payroll was $502,000, of which $102,000 is exempt from Social Security tax because it represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 was $366,000. Income taxes in the amount of $77,900 were withheld, as was $9,300 in union dues. The state unemployment tax is 3.5%, but Marigold Company is allowed a credit of 2.3% by the state...

  • The payroll of Bramble Company for September 2019 is as follows. Total payroll was $440,000, of...

    The payroll of Bramble Company for September 2019 is as follows. Total payroll was $440,000, of which $102,000 is exempt from Social Security tax because it represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 (the maximum for both federal and state unemployment tax) was $404,000. Income taxes in the amount of $79,400 were withheld, as was $8,700 in union dues. The state unemployment tax is 3.5%, but Bramble Company...

  • The payroll of YellowCard Company for September 2013 is as follows. Total payroll was $470,400, of...

    The payroll of YellowCard Company for September 2013 is as follows. Total payroll was $470,400, of which $153,700 is exempt from Social Security tax because it represented amounts paid in excess of $106,800 to certain employees. The amount paid to employees in excess of $7,000 was $391,700. Income taxes in the amount of $88,780 were withheld, as was $8,830 in union dues. The state unemployment tax is 3.5%, but YellowCard Company is allowed a credit of 2.3% by the state...

  • The payroll of Swifty Company for September 2019 is as follows. Total payroll was $434,000, of...

    The payroll of Swifty Company for September 2019 is as follows. Total payroll was $434,000, of which $104,000 is exempt from Social Security tax because it represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 was $363,000. Income taxes in the amount of $72,400 were withheld, as was $9,500 in union dues. The state unemployment tax is 3.5%, but Swifty Company is allowed a credit of 2.3% by the state...

  • The payroll of Tamarisk Company for September 2019 is as follows. Total payroll was $454,000, of...

    The payroll of Tamarisk Company for September 2019 is as follows. Total payroll was $454,000, of which $122,000 is exempt from Social Security tax because it represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 was $399,000. Income taxes in the amount of $73,400 were withheld, as was $9,800 in union dues. The state unemployment tax is 3.5%, but Tamarisk Company is allowed a credit of 2.3 % by the...

  • The payroll of Sarasota Company for September 2019 is as follows. Total payroll was $446,000, of...

    The payroll of Sarasota Company for September 2019 is as follows. Total payroll was $446,000, of which $106,000 is exempt from Social Security tax because it represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 (the maximum for both federal and state unemployment tax) was $400,000. Income taxes in the amount of $78,700 were withheld, as was $8,900 in union dues. The state unemployment tax is 3.5%, but Sarasota Company...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT