question archive Employees of Harding Fabricators, Inc
Employees of Harding Fabricators, Inc
Subject:AccountingPrice:3.87 Bought7
Employees of Harding Fabricators, Inc. earned gross wages of $140,000 during a recent two- week period. Employee withholdings and payroll tax percentages are presented below:
|
Federal withholding ................................... |
$33,000 |
|
Hospital insurance premiums ........................... |
3,050 |
|
FICA .................................................. |
7.5% |
|
State unemployment .................................... |
2.0% |
|
Federal unemployment .................................. |
0.8% |
Only $78,000 of wages are subject to FICA, and $36,000 are subject to unemployment taxes.
-
- Prepare the entry to record the gross payroll.
- Prepare the entry to record employer payroll taxes.
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
ANS:
|
(1) |
|
|
|
Gross Payroll: |
|
|
|
Wages Expense ............................. |
140,000 |
|
|
Federal Income Tax Withheld ............. |
|
33,000 |
|
Hospital Insurance Payable .............. |
|
3,050 |
|
FICA Taxes Payable ($78,000 ? 7.5%) ..... |
|
5,850 |
|
Wages Payable ........................... |
|
98,100 |
|
(2) |
|
|
|
Employer Payroll Taxes: |
|
|
|
Payroll Tax Expense ....................... |
6,858 |
|
|
FICA Taxes Payable ...................... |
|
5,850 |
|
State Unemployment Tax Payable .......... |
|
720 |
|
Federal Unemployment Tax Payable ........ |
|
288 |
SUT ($36,000 ? 2%) = $720 FUT ($36,000 ? .8%) = $288
