payroll transactions

Sheet1

Module 05 Assignment - Payroll Transactions

1. Calculate payroll for Karen Rodriguez and Adam Seyd for the June 14th and June 28th payrolls.

These employees are paid bi-weekly, meaning every other week.

Cash

FICA Tax Payable

June 14 Payroll

Karen Rodriguez

Adam Seyd

Total

Federal Income Tax Payable

Gross Pay

State Income Tax Payable

FICA Tax

Federal Unemployment Payable

Federal Income Tax

State Unemployment Payable

State Income Tax

Wages Expense

Net Pay

Payroll Tax Expense

June 28 Payroll

Karen Rodriguez

Adam Seyd

Total

Gross Pay

FICA Tax

Federal Income Tax

State Income Tax

Net Pay

2. Journalize the transactions necessary to record the payrolls.

Date

Account

Debit

Credit

6/14

Wages Expense

FICA Tax Payable

Federal Income Tax Payab;e

State Income Tax Payable

Cash

6/14

Payroll Tax Expense

FICA Tax Payable

Federal Unemployment Payable

State Unemployment Payable

6/28

Wages Expense

FICA Tax Payable

Federal Income Tax Payab;e

State Income Tax Payable

Cash

6/28

Payroll Tax Expense

FICA Tax Payable

Federal Unemployment Payable

State Unemployment Payable

Totals

3. Address the following questions:

3a. What is the total cost to the company of having these two employees for the month of June?

3b. What additional costs would be associated with adding one more employee for 10 hours per week at $15 per hour? Would it be more beneficial to add an additional part time employee or distribute the additional hours needed to the current part time employees? Explain.