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Rachesua97
ACG2011_Part2_Rachel_Suarez.xlsInformation
| Information: | |||
| ABC Company | |||
| Number of Employees: | 7 | ||
| Pay Period: | March 25 - 31,20X1 | ||
| Employee Name | Hours worked | Hourly rate | |
| John Doe | 40 | $15.00 | |
| Jane Jones | 40 | $15.00 | |
| Jessie Smith | 40 | $17.00 | |
| Erik Ackers | 25 | $17.00 | |
| Nan Schmit | 30 | $18.00 | |
| Larry Johnson | 35 | $20.00 | |
| Christopher Hay | 40 | $25.00 | |
| Key Assumptions: | Assume Federal Income Tax will be withheld at a rate of 20% for everyone. | ||
| FICA Social Security rate is 6.2% and Medicare is 1.45%. | |||
| When you called your State, they told you that your State Unemployment tax rate would be 5.4%. | |||
| Recall that the Federal Unemployment rate is the same for all businesses, 0.6%. | |||
| Assume that no employee has reached the wage limits for FUTA, SUTA or Social Security. | |||
| Required: | |||
| 1. Complete the Payroll Report worksheet | |||
| 2. Use the Transactions worksheet to complete your Journal worksheet |
Payroll Report
| Required: Complete the payroll report below using the information provided on the Information tab. | ||||||||
| March Payroll - 03/25-03/31 | ||||||||
| Employee Name | Hours worked | Hourly rate | Gross Pay | Federal Withholding | Social Security | Medicare | Net | |
| John Doe | 40 | $15.00 | $ 600.00 | $ 120.00 | $ 37.20 | $ 8.70 | $ 434.10 | |
| Jane Jones | 40 | $15.00 | $ 600.00 | $ 120.00 | $ 37.20 | $ 8.70 | $ 434.10 | |
| Jessie Smith | 40 | $17.00 | $ 680.00 | $ 136.00 | $ 42.16 | $ 9.86 | $ 491.98 | |
| Erik Ackers | 25 | $17.00 | $ 425.00 | $ 85.00 | $ 26.35 | $ 6.16 | $ 307.49 | |
| Nan Schmit | 30 | $18.00 | $ 540.00 | $ 108.00 | $ 33.48 | $ 7.83 | $ 390.69 | |
| Larry Johnson | 35 | $20.00 | $ 700.00 | $ 140.00 | $ 43.40 | $ 10.15 | $ 506.45 | |
| Christopher Hay | 40 | $25.00 | $ 1,000.00 | $ 200.00 | $ 62.00 | $ 14.50 | $ 723.50 | |
| Totals | $ 4,545.00 | $ 909.00 | $ 281.79 | $ 65.90 | $ 3,288.31 |
Transactions
| Required: Use the transactions below to complete your Journal on the next worksheet. | ||
| Tip: Refer to pages 402-404 of your text for examples. | ||
| Transactions | ||
| April | 1 | Record accrued payroll for March 25 through March 31 using the Payroll Report |
| 2 | Record employer payroll taxes for the same Payroll Report (hint - remember to record FUTA and SUTA as well) | |
| 7 | Record payment of cash to employees. |
Journal
| Required: Enter the journal entries from the transactions found on the Transaction worksheet | |||
| Journal Entries | |||
| Date | Account Title | Debit | Credit |
| March, 31 | Salaries Payable | 4,545.00 | |
| Federal Income Tax Withholding Payable | 909.00 | ||
| Social Security Tax Payable | 281.79 | ||
| Medicare Tax Payable | 65.90 | ||
| March, 31 | Payroll Tax Expense | 620.39 | |
| Social Security Tax Payable | 281.79 | ||
| Medicare Tax Payable | 65.90 | ||
| FUTA Tax Payable @0.60% | 27.27 | ||
| SUTA Taxes Payable @5.4% | 245.43 | ||
| March, 31 | Salaries Payable | 3,288.31 | |
| Cash | 3,288.31 | ||
| 8,453.70 | 5,165.39 |
