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154 an employee receives an hourly rate of 15 with time and a half for all hours wor 4295319

 

154. An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $120; cumulative earnings for the year prior to this week, $5,500; Social security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, .8% on the first $7,000. Prepare the journal entries to record the salaries expense and the employer payroll tax expense. 

 

 

 

 

 

155. Townson Company had gross wages of $200,000 during the week ended December 10.  The amount of wages subject to social security tax was $180,000, while the amount of wages subject to federal and state unemployment taxes was $24,000.  Tax rates are as follows:
 

Social security

6.0%

 

 

Medicare

1.5%

 

 

State unemployment

5.3%

 

 

Federal unemployment

0.8%

 

 

The total amount withheld from employee wages for federal taxes was $32,000.

Required:
 

(1)

Journalize the entry to record the payroll for the week of December 10.

 

 

(2)

Journalize the entry to record the payroll tax expense incurred for the week of December 10.

 

 

 

 

 

 

 

 

156. According to a summary of the payroll of Scotland Company, $450,000 was subject to the 7.0% social security tax and $500,000 was subject to the 1.5% Medicare tax.  Federal income tax withheld was $98,000.  Also, $15,000 was subject to state (4.2%) and federal (0.8%) unemployment taxes.

Required:
 

(1)

Journalize the entry to record the accrual of payroll.

 

 

(2)

Journalize the entry to record the accrual of payroll taxes.

 

 

 

 

 

 

 

 

157. The payroll register of Seaside Architecture Company indicates $970 of Social Security and $257 of Medicare tax withheld on total salaries of $16,500 for the period.  Federal withholding for the period totaled $4,235.  Provide the journal entry for the period’s payroll. 

 

 

 

 

 

 

 

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