Accounting Homework problems! HELP
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module07accounting_continuing_problem.xlsxWritten Exercise
| Module 07 Written Exercise | |||||||||||||||||
| For this exercise, conduct an internet search, use your assigned reading, or go to http://www.ssa.gov/pubs/10022.html to answer the following questions: | |||||||||||||||||
| Instructor Feedback | |||||||||||||||||
| 1 | How is self-employment income treated differently than income earned when you work for an employer? | ||||||||||||||||
| 2 | How do you report self-employment income? | ||||||||||||||||
| 3 | Why would you want to increase or decrease the number of your withholding allowances? | ||||||||||||||||
| 4 | What do you need to do to change the number of withholding allowances? | ||||||||||||||||
Payroll Problems
| Module 07 Payroll Problems | |||||||||||||||
| Problem 7.1 | |||||||||||||||
| Assume that the state tax rate is 3%. Calculate the state tax withholding. | |||||||||||||||
| State | Instructor Feedback | ||||||||||||||
| Employee | Wages | Withholding | |||||||||||||
| No. 1 | $ 925.00 | ||||||||||||||
| No. 2 | $ 2,100.00 | ||||||||||||||
| No. 3 | $ 2,800.00 | ||||||||||||||
| No. 4 | $ 3,500.00 | ||||||||||||||
| No. 5 | $ 5,500.00 | ||||||||||||||
| Problem 7.2 | |||||||||||||||
| Assume that the state tax rate is 2.75%. Calculate the state tax withholding. | |||||||||||||||
| State | Instructor Feedback | ||||||||||||||
| Employee | Wages | Withholding | |||||||||||||
| No. 1 | $ 775.00 | ||||||||||||||
| No. 2 | $ 2,500.00 | ||||||||||||||
| No. 3 | $ 2,950.00 | ||||||||||||||
| No. 4 | $ 3,150.00 | ||||||||||||||
| No. 5 | $ 6,350.00 | ||||||||||||||
| Problem 7.3 | |||||||||||||||
| Use the wage-bracket method to determine the federal income taxes to withhold from the wages and salaries of each employee. | Instructor Feedback | ||||||||||||||
| Use the wage brackets found in the Publication 15 PDF file provided with the assignment file. Assume the state tax rate is 3.75%. | |||||||||||||||
| For the FICA taxes, assume an OASDI rate of 6.5% and an HI rate of 1.25%. | |||||||||||||||
| With- | |||||||||||||||
| Marital | holding | State | Federal | Employee FICA | |||||||||||
| Employee | Status | Allow. | Wages | Withholding | Withholding | OASDI | HI | ||||||||
| No. 1 | Single | 1 | $1,100 weekly | ||||||||||||
| No. 2 | Single | 3 | $1,200 biweekly | ||||||||||||
| No. 3 | Married | 5 | $1,850 semimonthly | ||||||||||||
| No. 4 | Married | 8 | $2,100 semimonthly | ||||||||||||
| No. 5 | Married | 7 | $4,300 monthly | ||||||||||||
| Problem 7.4 | |||||||||||||||
| Use the wage-bracket method to determine the federal income taxes to withhold from the wages and salaries of each employee. | Instructor Feedback | ||||||||||||||
| Use the wage brackets found in the Publication 15 PDF file provided with the assignment file. Assume the state tax rate is 2%. | |||||||||||||||
| For the FICA taxes, assume an OASDI rate of 6.5% and an HI rate of 1.25%. | |||||||||||||||
| With- | |||||||||||||||
| Marital | holding | State | Federal | Employee FICA | |||||||||||
| Employee | Status | Allow. | Wages | Withholding | Withholding | OASDI | HI | ||||||||
| No. 1 | Single | 1 | $350 weekly | ||||||||||||
| No. 2 | Married | 5 | $700 biweekly | ||||||||||||
| No. 3 | Single | 4 | $1,450 semimonthly | ||||||||||||
| No. 4 | Married | 6 | $2,000 semimonthly | ||||||||||||
| No. 5 | Single | 3 | $4,500 monthly |
Continuing Problem Instructions
| Continuing Problem Instructions | |
| Refer to the partially completed payroll register which you worked on last week. 1. Record the state income taxes on the gross weekly earnings for each employee. For this exercise, assume the rate is 2% for the state of Minnesota. In reality, tax tables are used in Minnesota that are much like the federal tax tables used last week. 2. Record the city income taxes on the gross weekly earnings of each employee. Assume the rate is 1% for the city of Minneapolis residents. In reality, Minneapolis does not impose an income tax. Assume also that state and city taxes are calculated after 401k and healthcare contributions of the employee. | |
Continuing Problem Worksheet
| Continuing Problem Worksheen | |||||||||||||||||||||||||||||||||||||||||||||||||||
| North Country Hotel and Resort | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Payroll Register | |||||||||||||||||||||||||||||||||||||||||||||||||||
| For the Period Ending: Jan. 07, 20XX | |||||||||||||||||||||||||||||||||||||||||||||||||||
| No. | Employee | Marital Status | Allow. | Regular Earnings | Overtime Earnings | Deductions | Net Pay | Taxable Earnings | OASDI | HI | FIT | SIT | SUTA | CIT | SIMPLE | GROUP | HEALTH | Net | |||||||||||||||||||||||||||||||||
| Hours | Hourly Rate | Earnings | Hours | Hourly Rate | Earnings | Total Earnings | Group Life | Health Plan | 401K / Simple | FICA | FIT | SIT | CIT | SUTA | Check No. | Amount | OASDI | HI | FUTA | SUTA | 0.062 | 0.0145 | 0.0307 | 0.0007 | 0.03 | INS | INS | pay | oasdi | hi | futa | suta | |||||||||||||||||||
| OASDI | HI | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 300 | Adams, Nikki | S | 1 | 40 | $ 12.50 | $ 500.00 | 0 | $ 18.75 | $ - 0 | $ 500.00 | $ 5.00 | $ 50.00 | $ 20.00 | $ 27.00 | $ 3.25 | $ 39.00 | 21313 | 300 | 300 | 18.60 Mark Sears: Enter as a formula of taxable earnings x OASDI rate | 4.35 Mark Sears: Enter as a formula of taxable earnings x HI rate | 17.00 | 9.21 | 0.21 | 9.00 | 20.00 | 0.85 | 1.65 | 219.13 | 300.00 | 300.00 | 300.00 | 300.00 | ||||||||||||||||||
| 111 | Barr, Stephanie | S | 0 | 40 | $ 13.00 | $ 520.00 | 8 | $ 19.50 | $ 156.00 | $ 676.00 | $ 5.00 | $ 50.00 | $ 50.00 | $ 36.50 | $ 4.39 | $ 71.00 | 21314 | 290 | 87.04 | 377.04 | 23.38 | 5.47 | 34.00 | 11.58 | 0.26 | 11.31 | 50.00 | 0.85 | 1.65 | 238.55 | 377.04 | 377.04 | 377.04 | 377.04 | |||||||||||||||||
| 208 | Duginski, Samuel | M | 2 | 39.5 | $ 16.75 | $ 661.63 | 0 | $ 25.13 | $ - 0 | $ 661.63 | $ 5.00 | $ 100.00 | $ 40.00 | $ 35.73 | $ 4.30 | $ 21.00 | 21315 | 303.75 | 303.75 | 18.83 | 4.40 | - 0 | 9.33 | 0.21 | 9.11 | 40.00 | 0.85 | 1.65 | 219.36 | 303.75 | 303.75 | 303.75 | 303.75 | ||||||||||||||||||
| 198 | Glander, Morgan | M | 4 | 40 | $ 14.00 | $ 560.00 | 6 | $ 21.00 | $ 126.00 | $ 686.00 | $ 5.00 | $ 100.00 | $ 50.00 | $ 37.04 | $ 4.46 | $ 7.00 | 21316 | 316 | 71.1 | 387.1 | 24.00 | 5.61 | - 0 | 11.88 | 0.27 | 11.61 | 50.00 | 0.85 | 1.65 | 281.22 | 387.10 | 387.10 | 387.10 | 387.10 | |||||||||||||||||
| 189 | Hines, Terrance | S | 2 | 40 | $ 18.25 | $ 730.00 | 0 | $ 27.38 | $ - 0 | $ 730.00 | $ 5.00 | $ 50.00 | $ 20.00 | $ 39.42 | $ 4.75 | $ 62.00 | 21317 | 390 | 390 | 24.18 | 5.66 | 19.00 | 11.97 | 0.27 | 11.70 | 20.00 | - 0 | 1.65 | 295.57 | 390.00 | 390.00 | 390.00 | 390.00 | ||||||||||||||||||
| 68 | Jama, Adamo | M | 3 | 40 | $ 26.25 | $ 1,050.00 | 1.75 | $ 39.38 | $ 68.91 | $ 1,118.91 | $ 10.00 | $ 100.00 | $ 40.00 | $ 60.42 | $ 7.27 | $ 70.00 | 21318 | 515 | 24.15 | 539.15 | 33.43 | 7.82 | 11.00 | 16.55 | 0.38 | 16.17 | 40.00 | 0.85 | 1.65 | 411.30 | 539.15 | 539.15 | 539.15 | 539.15 | |||||||||||||||||
| 45 | Lee, Min | M | 6 | 40 | $ 27.55 | $ 1,101.92 | 4 | $ 41.33 | $ 165.30 | $ 1,267.22 | $ 10.00 | $ 100.00 | $ 50.00 | $ 68.43 | $ 8.24 | $ 57.00 | 21319 | 392.31 | 392.31 | 24.32 | 5.69 | - 0 | 12.04 | 0.27 | 11.77 | 50.00 | 0.85 | 1.65 | 285.71 | 392.31 | 392.31 | 392.31 | 392.31 | ||||||||||||||||||
| 17 | Rorberts, Tammi | S | 1 | 40 | $ 36.66 | $ 1,466.54 | 0 | $ 54.99 | $ - 0 | $ 1,466.54 | $ 10.00 | $ 50.00 | $ 60.00 | $ 79.19 | $ 9.53 | $ 229.64 | 21320 | 542.31 | 542.31 | 33.62 | 7.86 | 47.00 | 16.65 | 0.38 | 16.27 | 60.00 | - 0 | 1.65 | 358.88 | 542.31 | 542.31 | 542.31 | 542.31 | ||||||||||||||||||
| 12 | Vick, Tomika | M | 5 | 40 | $ 49.10 | $ 1,963.85 | 1 | $ 73.65 | $ 73.65 | $ 2,037.50 | $ 10.00 | $ 100.00 | $ 30.00 | $ 110.02 | $ 13.24 | $ 183.03 | 21321 | 348.46 | 52.28 | 400.74 | 24.85 | 5.81 | - 0 | 12.30 | 0.28 | 12.02 | 30.00 | 0.85 | 1.65 | 312.98 | 400.74 | 400.74 | 400.74 | 400.74 | |||||||||||||||||
| 9 | Yo, Margaret | M | 7 | $40.00 | $ 2,403.85 | $0.00 | $ - 0 | $ - 0 | $ 2,403.85 | $ 10.00 | $ 100.00 | $ 80.00 | $ 129.81 | $ 15.63 | $ 222.86 | 21322 | 1000 | 1000 | 62.00 | 14.50 | 24.00 | 30.70 | 0.70 | 30.00 | 80.00 | 0.85 | 1.65 | 755.60 | 1,000.00 | 1,000.00 | 1,000.00 | 1,000.00 | |||||||||||||||||||
| Totals | $ 10,957.79 | $ 589.86 | $ 11,547.65 | $ 75.00 | $ 800.00 | $ 440.00 | $ 623.56 | $ 75.06 | $ 962.53 | 4,397.83 Mark Sears: Enter as formula totaling column | 234.57 Mark Sears: Enter as formula totaling column | 4,632.40 Mark Sears: Enter as formula totaling column | 287.21 Mark Sears: Enter as formula totaling column | 67.17 Mark Sears: Enter as formula totaling column | 152.00 Mark Sears: Enter as formula totaling column | 142.21 Mark Sears: Enter as formula totaling column | 3.24 Mark Sears: Enter as formula totaling column | 138.97 Mark Sears: Enter as formula totaling column | 440.00 Mark Sears: Enter as formula totaling column | 6.80 Mark Sears: Enter as formula totaling column | 16.50 Mark Sears: Enter as formula totaling column | 3,378.29 Mark Sears: Enter as formula totaling column | 4,632.40 Mark Sears: Enter as formula totaling column | 4,632.40 Mark Sears: Enter as formula totaling column | 4,632.40 Mark Sears: Enter as formula totaling column | 4,632.40 Mark Sears: Enter as formula totaling column |
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Mark Sears: Enter as a formula of taxable earnings x OASDI rate |
Mark Sears: Enter as a formula of taxable earnings x HI rate |
Mark Sears: Enter as formula totaling column |
Mark Sears: Enter as formula totaling column |
Mark Sears: Enter as formula totaling column |
Mark Sears: Enter as formula totaling column |
Mark Sears: Enter as formula totaling column |
Mark Sears: Enter as formula totaling column |
Mark Sears: Enter as formula totaling column | Journal | ||||||||||||||||||||||||||||||||||||||||||
| Date | Account | Debit | Credit | Taxable | OASDI | ||||||||||||||||||||||||||||||||||||||||||||||
| Earnings | Rate | Tax | |||||||||||||||||||||||||||||||||||||||||||||||||
| 01/07/20XX | Salaries and Wages Expense | OASDI | 4,632.40 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Employee FIT Payable | 287.21 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Employee SIT Payable | HI Tax | 67.17 | Taxable | ||||||||||||||||||||||||||||||||||||||||||||||||
| Empoyee SUTA Payable | HI | 152.00 | Earnings | Rate | Net FUTA | ||||||||||||||||||||||||||||||||||||||||||||||
| Employee CIT Payabale | 142.21 | 4,632.40 | 0.006 | 27.79 | |||||||||||||||||||||||||||||||||||||||||||||||
| FICA - OASDI Payable | 3.24 | SUTA | |||||||||||||||||||||||||||||||||||||||||||||||||
| FICA - HI Payable | FUTA Tax | 138.97 | 4,632.40 | 0.036785 | 170.40 | ||||||||||||||||||||||||||||||||||||||||||||||
| 401K Contributions Payable | FUTA | 440.00 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Group Insurance Premiums Payable | 6.80 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Health Insurance Premiums Payable | SUTA Tax | 16.50 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Salaries and Wages Payable | SUTA | 3,378.29 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 01/07/20XX | Payroll Taxes Expense | 552.58 | |||||||||||||||||||||||||||||||||||||||||||||||||
| FICA - OASDI Payable | 287.21 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| FICA - HI Payabale | 67.17 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| FUTA Taxes Payable | 27.79 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| SUTA Taxes Payable | 170.40 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 01/14/20XX | Salaries and Wages Payable | 3,378.29 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Cash | 3,378.29 | ||||||||||||||||||||||||||||||||||||||||||||||||||
