AC 302 CHAPTER 13 PROBLEM QUESTION 3

AC 302 CHAPTER 13 PROBLEM QUESTION 3
Name				Date			
Instructor				Course			
Intermediate Accounting 14th Edition by Kieso Weygandt and Warfield							
Primer on Using Excel in Accounting by Rex A Schildhouse							
							
P13-4 (Payroll Tax Entries) Below is a payroll sheet for Otis Import Company for the month of September 2012. The 							
company is allowed a		1.00%	unemployment compensation rate by the state; the federal unemployment				
tax rate is	0.80%	and the maximum for both is		$7,000 	. Assume a	10%	federal
income tax rate for all employees and a			7.65%	FICA tax on employee and employer on a maximum of 			
$106,800 	. In addition,	1.45%	is charged both employer and employee for an employee- wages in excess				
of	$106,800 	per employee.					
							
Name	"Earnings to
Aug 31"	"September
Earnings"	"Income Tax
Withholding"	F.I.C.A.	"State
U.C."	"Federal
U.C."	
B.D. Williams	$6,800.00 	$800.00 					
D. Raye	6,500.00 	700.00 					
K. Baker	7,600.00 	1,100.00 					
F. Lopez	13,600.00 	1,900.00 					
A. Daniels	105,000.00 	13,000.00 					
B. Kingston	112,000.00 	16,000.00 					
							
Instructions:							
(a) Complete the payroll sheet and make the necessary entry to record the payment of the payroll.							
							
Name	Earnings to Aug. 31	September Earnings	Income Tax Withholding	FICA	Ref	State U.C.	Federal U.C.
B.D. Williams	6,800 	800 	Formula	Formula	c	Formula	Formula
D. Raye	6,500 	700 	Formula	Formula		Formula	Formula
K. Baker	7,600 	1,100 	Formula	Formula		    -	   -
F. Lopez	13,600 	1,900 	Formula	Formula		    -	   -
A. Daniels	105,000 	13,000 	Formula	Formula	a	    -	   -
B. Kingston	112,000 	16,000 	Formula	Formula	b	    -	   -
     Total	251,500 	33,500 	Formula	Formula		Formula	Formula
							
a	Enter detail as desired.						
b	Enter detail as desired.						
c	Enter detail as desired.						
	Enter detail as desired.						
							
	Account Title				Formula		
	Account Title					Amount	
	Account Title					Amount	
	Account Title					Amount	
							
(b) Make the entry to record the payroll tax expenses of Otis Import Company.							
	Account Title				Formula		
	Account Title					Amount	
	Account Title					Amount	
	Account Title					Amount	
							
(c) Make the entry to record the payment of the payroll liabilities created. Assume that the company pays all payroll liabilities at the end of each month.							
							
							
Dec 31	Account Title				Amount		
	Account Title				Amount		
	Account Title				Amount		
	Account Title				Amount		
	Account Title					Formula