3.99 See Answer

Question: Kay’s Agency has the following payroll

Kay’s Agency has the following payroll information for the week ended December 14. State income tax is computed as 20 percent of federal income tax.



Kay’s Agency has the following payroll information for the week ended December 14. State income tax is computed as 20 percent of federal income tax.Assumed tax rates are as follows:a. FICA: Social Security, (employer) 6.2 percent (0.062) and (employee) 6.2 percent (0.062) on the first $118,500 for each employee, and Medicare, 1.45 percent (0.0145) on all earnings for each employee.b. State unemployment tax, 5.4 percent (0.054) on the first $7,000 for each employee.c. Federal unemployment tax, 0.6 percent (0.006) on the first $7,000 for each employee.Required1. Complete the payroll register. Payroll checks begin with Ck. No. 5923 in the payroll register.2. Prepare a general journal entry to record the payroll as of December 14. The company’s general ledger contains a Salary Expense account and a Salaries Payable account.3. Prepare a general journal entry to record the payroll taxes as of December 14.4. Journalize the entry to pay the payroll on December 16. (Assume that the company has transferred cash to the Cash—Payroll Bank Account for this payroll.)

Assumed tax rates are as follows:
a. FICA: Social Security, (employer) 6.2 percent (0.062) and (employee) 6.2 percent (0.062) on the first $118,500 for each employee, and Medicare, 1.45 percent (0.0145) on all earnings for each employee.
b. State unemployment tax, 5.4 percent (0.054) on the first $7,000 for each employee.
c. Federal unemployment tax, 0.6 percent (0.006) on the first $7,000 for each employee.

Required
1. Complete the payroll register. Payroll checks begin with Ck. No. 5923 in the payroll register.
2. Prepare a general journal entry to record the payroll as of December 14. The company’s general ledger contains a Salary Expense account and a Salaries Payable account.
3. Prepare a general journal entry to record the payroll taxes as of December 14.
4. Journalize the entry to pay the payroll on December 16. (Assume that the company has transferred cash to the Cash—Payroll Bank Account for this payroll.)


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3.99

See Answer