80.2K

Verified Solution

Link Copied!

The Board of Directors has moved further into reviewing the liabilities of ABC Company. They wish to learn more about the payroll requirements of ABC Company. Using the spreadsheet below, complete the workbook for one payroll cycle Record accrued payroll for March 25 through March 31 using the Payroll Report. Record employer payroll taxes for the same Payroll Report (hint - remember to record FUTA and SUTA as well). Record payment of cash to employees.

Information
ABC Company
Number of Employees	7
March Payroll - 03/25-03/31
Employee Name		Hours worked	Hourly rate
John Doe		40	$25.00
Jane Jones		40	$24.00
Jessie Smith		40	$17.00
Erik Ackers		25	$15.00
Nan Schmit		30	$17.00
Larry Johnson		35	$18.00
Christopher Hay		40	$18.00
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.
Assume that no employee has reached the wage limits for FUTA, SUTA or Social Security.

Transactions

1

Record accrued payroll for March 25 through March 31 using the Payroll Report

Record employer payroll taxes for the same Payroll Report (hint - remember to record FUTA and SUTA as well)

Record payment of cash to employees.

2.

Required: Enter the journal entries from the transactions found on the Transaction worksheet

suta 5.4%

Employee Name		Hours worked	Hourly rate
John Doe		40	$25.00
Jane Jones		40	$24.00
Jessie Smith		40	$17.00
Erik Ackers		25	$15.00
Nan Schmit		30	$17.00
Larry Johnson		35	$18.00
Christopher Hay		40	$18.00

Answer & Explanation Solved by verified expert

See Answer