Financial & Managerial Accounting
13th Edition
ISBN: 9781285866307
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 10, Problem 10.10EX
A.
To determine
Payroll: The total payment that a company is required to pay to its employee for the services received is called as payroll.
Payroll withholding deduction: The amounts which the employer withheld from employees’ gross pay to deduct taxes such as federal income tax, state income tax, local income tax, and social security tax are called payroll withholding deduction.
To calculate: Omitted amounts
B.
To determine
To Journalize: The entry to record payroll accrual.
C.
To determine
To Journalize: The entry to record the payment of payroll.
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Summary Payroll Data
In the following summary of data for a payroll period, some amounts have been intentionally omitted:
Earnings:
1. At regular rate
?
2. At overtime rate
$77,100
3. Total earnings
?
Deductions:
4. Social security tax
30,840
5. Medicare tax
7,710
6. Income tax withheld
131,100
7. Medical insurance
17,700
8. Union dues
?
9. Total deductions
190,000
10. Net amount paid
324,000
Accounts debited:
11. Factory Wages
272,400
12. Sales Salaries
?
13. Office Salaries
102,800
a. Calculate the amounts omitted in lines (1), (3), (8), and (12).
(1)
$
(3)
$
(8)
$
(12)
$
b. Journalize the entry to record the payroll accrual. If an amount box does not require an entry, leave it blank.
c. Journalize the entry to record the payment of the payroll.
Summary Payroll Data
In the following summary of data for a payroll period, some amounts have been intentionally omitted:
Earnings:
1. At regular rate
?
2. At overtime rate
$80,000
3. Total earnings
?
Deductions:
4. Social security tax
(32,400)
5. Medicare tax
(8,100)
6. Income tax withheld
(135,000)
7. Medical insurance
(18,900)
8. Union dues
?
9. Total deductions
(201,150)
10. Net amount paid
$338,850
Accounts debited:
11. Factory Wages
285,000
12. Sales Salaries
?
13. Office Salaries
120,000
a. Calculate the amounts omitted in lines (1), (3), (8), and (12). Assume that the social security tax rate was 6.0% and the Medicare tax rate was 1.5%.
(1)
$fill in the blank 0d2eaefd3faafeb_1
(3)
$fill in the blank 0d2eaefd3faafeb_2
(8)
$fill in the blank 0d2eaefd3faafeb_3
(12)
$fill in the blank 0d2eaefd3faafeb_4
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b. Journalize the entry to record the payroll accrual. If an amount…
In the following summary of data for a payroll period, some amounts have been intentionally omitted:
Earnings:
1. At regular rate
?
2. At overtime rate
$66,000
3. Total earnings
?
Deductions:
4. Social security tax
37,560
5. Medicare tax
9,390
6. Income tax withheld
130,000
7. Medical insurance
21,910
8. Union dues
?
9. Total deductions
205,610
10. Net amount paid
420,390
Accounts debited:
11. Factory Wages
267,000
12. Sales Salaries
?
13. Office Salaries
100,000
Required:
A.
Calculate the amounts omitted in lines (1), (3), (8), and (12).
B.
On December 19, journalize the entry to record the payroll accrual.*
C.
On December 20, journalize the entry to record the payment of the payroll.
Chapter 10 Solutions
Financial & Managerial Accounting
Ch. 10 - Does a discounted note payable provide credit...Ch. 10 - Employees are subject to taxes withheld from their...Ch. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Prob. 5DQCh. 10 - Prob. 6DQCh. 10 - To match revenues and expenses properly, should...Ch. 10 - Prob. 8DQCh. 10 - When should the liability associated with a...Ch. 10 - Prob. 10DQ
Ch. 10 - Proceeds from notes payable On October 12,...Ch. 10 - Proceeds from notes payable On January 26, Nyree...Ch. 10 - Prob. 10.2APECh. 10 - Prob. 10.2BPECh. 10 - Prob. 10.3APECh. 10 - Prob. 10.3BPECh. 10 - Prob. 10.4APECh. 10 - Prob. 10.4BPECh. 10 - Prob. 10.5APECh. 10 - Prob. 10.5BPECh. 10 - Prob. 10.6APECh. 10 - Prob. 10.6BPECh. 10 - Prob. 10.7APECh. 10 - Prob. 10.7BPECh. 10 - Quick ratio Nabors Company reported the following...Ch. 10 - Quick ratio Adieu Company reported the following...Ch. 10 - Current liabilities Bon Nebo Co. sold 25,000...Ch. 10 - Entries for discounting notes payable Griffin...Ch. 10 - Evaluating alternative notes A borrower has two...Ch. 10 - Entries for notes payable A business issued a...Ch. 10 - Entries for discounted note payable A business...Ch. 10 - Prob. 10.6EXCh. 10 - Prob. 10.7EXCh. 10 - Calculate payroll An employee earns 32 per hour...Ch. 10 - Prob. 10.9EXCh. 10 - Prob. 10.10EXCh. 10 - Payroll tax entries According to a summary of the...Ch. 10 - Prob. 10.12EXCh. 10 - Prob. 10.13EXCh. 10 - Prob. 10.14EXCh. 10 - Prob. 10.15EXCh. 10 - Accrued vacation pay A business provides its...Ch. 10 - Pension plan entries Yuri Co. operates a chain of...Ch. 10 - Prob. 10.18EXCh. 10 - Accrued product warranty Lowe Manufacturing Co....Ch. 10 - Prob. 10.20EXCh. 10 - Prob. 10.21EXCh. 10 - Quick ratio Gmeiner Co. had the following current...Ch. 10 - Prob. 10.23EXCh. 10 - Liability transactions The following items were...Ch. 10 - Entries for payroll and payroll taxes The...Ch. 10 - Wage and tax statement data on employer FICA tax...Ch. 10 - Payroll register The following data for Throwback...Ch. 10 - Payroll accounts and year-end entries The...Ch. 10 - Prob. 10.1BPRCh. 10 - Entries for payroll and payroll taxes The...Ch. 10 - Prob. 10.3BPRCh. 10 - Prob. 10.4BPRCh. 10 - Payroll accounts and year-end entries The...Ch. 10 - Prob. 1CPPCh. 10 - Ethics and professional conduct in business Tonya...Ch. 10 - Prob. 10.2CPCh. 10 - Prob. 10.3CPCh. 10 - Prob. 10.5CP
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