Total Payroll of Walnut Co

question 103

Essay

Total payroll of Walnut Co. was $1,840,000, of which $320,000 represented amounts paid in excess of $106,800 to certain employees. The amount paid to employees in excess of $7,000 was $1,440,000. Income taxes withheld were $450,000. The state unemployment tax is 1.2%, the federal unemployment tax is .8%, and the F.I.C.A. tax is 7.65% on an employee's salaries and wages to $106,800 and 1.45% in excess of $106,800.
Instructions
(a) Prepare the journal entry for the salaries and wages paid.
(b) Prepare the entry to record the employer payroll taxes.

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Definitions:

Positive Slope

In graphing terms, indicates an increase in the y-variable for an increase in the x-variable, typically reflecting a direct relationship between two variables.

Panels

Groups of people selected to provide feedback or opinions on various topics or a term used to refer to flat components, like solar panels, that form part of a larger structure.

45-degree Line

A line in economic graphs illustrating points where two variables measured on the axes are equal.

Indeterminate

Lacking clear or definite limits or form; unable to be precisely measured or decided.