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, Chapter: 6 -Problem: 5 >> Purnell, Inc., has a semimonthly payroll of $53,900 on September 15. The total payroll is taxable  under FICA Taxes—HI; $50,400 is taxable under FICA Taxes—OASDI; and $7,300 is taxable under FUTA and SUTA. The state contribution rate for the company is 3.1%. The amount withheld for federal income taxes is $6,995. The amount withheld for state income taxes is $1,010.a. Journalize the payment of the
Answer Preview: a. Date Account Debit Credit September 15 Salaries and wages expense $53,900 September 15 FICA taxes …

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, Chapter: 7 -Problem: 3 >> The amount of the group insurance premiums collected from employees during the quarter ended December 31 was ..................................$
Answer Preview: Response: $6,000 expalanation; According …

, Chapter: 5 -Problem: 1 >> Refer to the partially completed payroll register that you worked on at the end of Chapter 4. You will now compute the employer’s liability for unemployment taxes (FUTA and SUTA) for the pay of January 14. These computations will be used at the end of Chapter 6 in recording the payroll tax entries. To compute the employer’s liability for unemployment taxes, proceed as follows:1. Enter each employe
Answer Preview: To compute the employer's liability for unemployment taxes (FUTA and SUTA), we need to follow the gi…

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, Chapter: 6 -Problem: 10 >> On December 31, 2016, Reuter Company has a balance of $98.75 in the FUTA taxes payable account. This represents the employer’s liability for the fourth quarter taxes. Journalize the entry Reuter Company should make in January 2017 to record the last transfer (payment) of FUTA taxes for 2016.
Answer Preview: Since the balance of $98 75 in the FUTA taxes payable account represents …

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, Chapter: 5 -Problem: 15 >> Applebaum Security Company is located in State H, which enables employers to reduce their contribution rates under the experience-rating system. From 2002 to 2011, inclusive, the company’s total contributions to state unemployment compensation amounted to $18,135. For the calendar years 2012 to 2015, inclusive, the contribution rate for Applebaum was 3.7%.The contributions of each employer are cre
Answer Preview: ANSWER a. To calculate the contribution rate for 2016, we first need to determine the Reserve Ratio …

, Chapter: 5 -Problem: 12 >> The following unemployment tax rate schedule is in effect for the calendar year 2016 in State A, which uses the reserve-ratio formula in determining employer contributions:                                          Conrad Company, which is located in State A, had an average annual payroll of $1,150,000 for the three 12-month periods ending on June 30, 2015 (the computation date for the tax year 201
Answer Preview: a: Determine the reserve ratio for 2015 in the following manner: Reserve ratio = Contributions in ex…

, Chapter: 6 -Problem: 1 >> In this last phase of your work on the Continuing Payroll Problem A, you will record the amounts withheld for group and health insurance and calculate the net pay for each employee. Refer to the partially completed payroll registers upon which you were working at the end of Chapter 5, and proceed as follows:1. In the appropriate column of the payroll register, record the amount to be withheld for
Answer Preview: Payroll Register for Kipley Company For the Week Ending January 8 Employee Hours Worked Hourly Rate …

, Chapter: 7 -Problem: 5 >> On the financial statements prepared at the end of its first year of operations, the company must show an accurate picture of all expenses and all liabilities incurred. The last payday of the year was December 18. However, the payment to the employees on that day did not include the weeks ending December 19 and 26 and the four days (December 28–31) in the following week. These earnings will be ref
Answer Preview: Debit Account Credit Account Amount Salaries and Wages Expense $4,600 Salaries and Wages Payable $4,…

, Chapter: 4 -Problem: 5 >> The names of the employees of Hogan Thrift Shop are listed on the following payroll register. Employees are paid weekly. The marital status and the number of allowances claimed are shown on the payroll register, along with each employee’s weekly salary, which has remained the same all year. Complete the payroll register for the payroll period ending December 16, the 51st weekly payday. The state i
Answer Preview: ANSWER To compute the employer's FICA taxes, we need to calculate the Social Security (OASDI) and Me…

, Chapter: 5 -Problem: 17 >> The information listed below refers to the employees of Brennan Company for the year ended December 31, 2016. The wages are separated into the quarters in which they were paid to the individual employees.                            For 2016, State D’s contribution rate for Brennan Company, based on the experience-rating system of the state, was 3.6% of the first $7,000 of each employee’s earnings.
Answer Preview: ANSWER a. Tax Payment: Date: January 31, 2017 Amount: $1,155 b. Employer's Report for Unemployment C…

, Chapter: 4 -Problem: 6 >> What is a personal allowance? What was the amount of a personal allowance for 2015?
Answer Preview: A personal allowance is a certain amount of income that an individual is a…

, Chapter: 6 -Problem: 1 >> In this last phase of your work on the Continuing Payroll Problem B, you will record the amounts withheld for group and health insurance and calculate the net pay for each employee. Refer to the partially completed payroll registers upon which you were working at the end of Chapter 5, and proceed as follows:1. In the appropriate column of the payroll register, record the amount to be withheld for
Answer Preview: I'm sorry, but as an AI language model, I cannot complete the tasks you have described as I do not have access to the necessary data or software. Howe…

, Chapter: 3 -Problem: 9 >> Haggerty Company pays its salaried employees monthly on the last day of each month. The annual salary payroll for 20-- follows. Compute the following for the payroll of December 31:
Answer Preview: To calculate the OASDI (Social Security) tax, we need to multiply each employee's taxable wages by t…

, Chapter: 6 -Problem: 10 >> On December 31, 2016, Santucci Company has a balance of $619.24 in the FUTA taxes payable account. This represents the employer’s liability for the fourth quarter taxes. Journalize the entry Santucci Company should make in January 2017 to record the last transfer (payment) of FUTA taxes for 2016.
Answer Preview: Since the balance of $619 24 in the FUTA taxes payable account represent…

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, Chapter: 4 -Problem: 9 >> Under what conditions may employees be exempt from the withholding of federal income taxes during 2015? How do such employees indicate their no-tax-liability status?
Answer Preview: Employees may be exempt from the withholding of federal income taxes during 2015 if they meet certai…

, Chapter: 5 -Problem: 12 >> The following unemployment tax rate schedule is in effect for the calendar year 2016 in State A, which uses the reserve-ratio formula in determining employer contributions:                                        Hyram Company,which is located in State A, had an average annual payroll of $850,000 for the three 12-month periods ending on June 30, 2015 (the computation date for the tax year 2016). As
Answer Preview: a. Hyram Companys reserve Ratio for 2015 Reserve Ratio = Contribution Made / Average Annual Payro…

, Chapter: 3 -Problem: 17 >> At Gleeson Brewing Company, office workers are employed for a 40-hour workweek on either an annual or a monthly salary basis.Given on the form below are the current annual and monthly salary rates for five office workers for the week ended December 9, 2016 (50th payday of the year). In addition, with this pay, these employees are paid their sliding-scale annual bonuses. The bonuses are listed on t
Answer Preview: 1. Regular earnings for the weekly payroll ended December 9, 2016: Regular earnings for a salaried e…

, Chapter: 6 -Problem: 13 >> In Oregon, employers who are covered by the state workers’ compensation law withhold employee contributions from the wages of covered employees for the workers’ benefit fund at the rate of 1.65¢ for each hour or part of an hour that the worker is employed. Every covered employer is also assessed 1.65¢ per hour for each worker employed for each hour or part of an hour. The employer-employee contrib
Answer Preview: ANSWER a. The amount the company should have withheld from its full- and part-time employees during …

, Chapter: 5 -Problem: 16 >> As the accountant for Monroe Trucking Company, you are preparing the company’s annual return, Form 940 and Schedule A. Use the following information to complete Form 940 and Schedule A on pages 5-50 to 5 52. The net FUTA tax liability for each quarter of 2016was as follows: 1st, $97.00; 2nd, $87.00; 3rd, $69.70; and 4th, $59.50. Since the net FUTA tax liability did not exceed $500, the company was
Answer Preview: To complete Form 940 and Schedule A for Monroe Trucking Company, the following information is needed…

, Chapter: 4 -Problem: 1 >> Refer to the partially completed payroll register which you worked on at the end of Chapter 3. You will now determine the amount of income tax to withhold for each employee, proceeding as follows:1. In the appropriate columns of your payroll register, record the marital status and number of withholding allowances claimed for each employee, using the information provided. 2. Record the payroll dedu
Answer Preview: To calculate the amount of income tax to withhold for each employee, we need to follow the steps outlined in the question. Step 1: Record the marital status and number of withholding allowances claime…

, Chapter: 6 -Problem: 7 >> Carmen Santos is owner and sole employee of CS Corporation. He pays himself a salary of $2,400 this week.                                    Record the payroll entry and payroll tax entry for the pay of the week ended June 3 (his year-to-date pay is $51,500).
Answer Preview: Based on the information provided, the journal entry for the payroll and payroll tax entri…

, Chapter: 4 -Problem: 10 >> Harrington Company is giving each of its employees a holiday bonus of $250 on December 16 (a nonpayday). The company wants each employee’s check to be $250. The supplemental tax percent is useda. What will be the gross amount of each bonus if each employee pays a state income tax of 3.01% (besides the other payroll taxes)?b. What would the net amount of each bonus check be if the company did not g
Answer Preview: To determine the gross amount of each bonus, we need to calculate the a…

, Chapter: 3 -Problem: 1 >> Refer to the partially completed payroll register you started at the end of Chapter 2. You will now determine the amount of FICA taxes to be withheld from each employee’s pay for the pay period ending January 8, 20--.1. In the Taxable Earnings columns, record the amount of each employee’s weekly earnings that is subject to FICA taxes.2. Using the amount recorded in step 1, compute the taxes for ea
Answer Preview: Every company will keep a payroll register where they can record information about their employees, including their names, total wages, deductions, an…

, Chapter: 3 -Problem: 11 >> Gallagher Company has gathered the information needed to complete its Form 941 for the quarter ended September 30, 2016. Using the information presented below, complete Part 1 of Form 941, reproduced on the next page.# of employees for pay period that included September 12 —15 employees Wages paid third quarter—$89,352.18 Federal income tax withheld in the third quarter—$10,195.00 Taxable social s
Answer Preview: Here is the completed Part 1 of Form 941 for Gallagher Company for the quarter ended September 30, 2…

, Chapter: 6 -Problem: 15 >> The form on page 6-45 shows the amounts that appear in the Earnings to Date column of the employees’ earnings records for 10 full-time and part-time workers in Unger Company. These amounts represent the cumulative earnings for each worker as of October 7, the company’s last payday. The form also gives the gross amount of earnings to be paid each worker on the next payday, October 14.In the state w
Answer Preview: The problem is presented with all the necessary information and presentation. …

, Chapter: 6 -Problem: 13 >> In Oregon, employers who are covered by the state workers’ compensation law withhold employee contributions from the wages of covered employees for the workers’ benefit fund at the rate of 1.65¢ for each hour or part of an hour that the worker is employed. Every covered employer is also assessed 1.65¢ per hour for each worker employed for each hour or part of an hour. The employer-employee contrib
Answer Preview: ANSWER a. The amount the company should have withheld from its full- and part-time employees during …

, Chapter: 7 -Problem: 4 >> O’Neill has decided to give all current employees (excluding himself) a bonus payment during January equal to 5% of their total gross pay for last year. Determine the total of this bonus payment ..............................$
Answer Preview: To determine the total bonus payment, we need to know the total gross …

, Chapter: 5 -Problem: 1 >> Refer to the partially completed payroll register that you \worked on at the end of Chapter 4. You will now compute the employer’s liability for unemployment taxes (FUTA and SUTA) for the pay of January 14. These computations will be used at the end of Chapter 6 in recording the payroll tax entries.To compute the employer’s liability for unemployment taxes, proceed as follows:1. Enter each employ
Answer Preview: Employee Gross Earnings Taxable EarningsFUTA Taxable EarningsSUTA A. Rogers $1,700 00 $1,700 00 $1,7…

, Chapter: 1 -Problem: 4 >> How are the funds used which are provided by FUTA and SUTA?
Answer Preview: FUTA and SUTA refer to the Federal Unemployment Tax Act and State Unemployment Tax Act, respectively…

, Chapter: 3 -Problem: 3 >> Eric Sherm began working as a part-time waiter on April 1, 2016, at Yardville Restaurant. The cash tips of $475 that he received during April were reported on Form 4070, which he submitted to his employer on May 2. During May, he was paid wages of $630 by the restaurant. Compute OASDI and HI:a. The amount of FICA taxes that the employer should withhold from Sherm’s wages during May. b. The amount
Answer Preview: To compute the OASDI and HI taxes for Eric Sherm and the employer, we need to use the following info…

, Chapter: 3 -Problem: 16 >> Yelman Company is a monthly depositor whose tax liability for June 2016 is $3,930.1. What is the due date for the deposit of these taxes?                 _________ 2. Assume that no deposit was made until August 5. Compute the following penalties:a. Penalty for failure to make timely deposit.                         $________ b. Penalty for failure to fully pay tax.                                
Answer Preview: The due date for the deposit of these taxes depends on the deposit schedule assigned by the IRS based on the total tax liability reported on the busin…

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