The Payroll Records of a Company Provided the Following Data

question 66

Essay

The payroll records of a company provided the following data for the weekly pay period ended December 7: $\begin{array}{|l|r|r|r|r|r|r|}\hline \text { Employee } & \begin{array}{r}\text { Earnings } \\\text { to End of } \\\text { Previous } \\\text { Week }\end{array} & \begin{array}{r}\text { Gross } \\\text { Pay }\end{array} & \begin{array}{r}\text { Federal } \\\text { Income } \\\text { Taxes }\end{array} & \begin{array}{r}\text { Medical } \\\text { Insurance } \\\text { Deduction }\end{array} & \begin{array}{r}\text { Union } \\\text { Dues }\end{array} & \begin{array}{r}\text { United } \\\text { Way }\end{array} \\\hline \text { Ronald Arthur } & \$ 54,000 & \$ 1,200 & \$ 216 & \$ 125 & \$ 15 & \$ 15 \\\hline \text { John Baines } & 40,500 & 900 & 162 & 125 & 15 & 30 \\\hline \text { Ted Carter } & 45,000 & 1,000 & 180 & 150 & 0 & 20 \\\hline\end{array}$ The FICA social security tax rate is 6.2% and the FICA Medicare tax rate is 1.45% on all of this week's wages paid to each employee. The federal and state unemployment tax rates are 0.8% and 5.4%, respectively, on the first $7,000 paid to each employee. Prepare the journal entries to (a) accrue the payroll and (b) record payroll taxes expense.

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Definitions:

Rent-Sharing Agreement

An arrangement where income generated from a property is shared between the owner and another party, often in proportion to their contributions or roles.

Monthly Rental

is a periodic payment made by a lessee to a lessor for the use of property, land, or equipment, typically paid once a month.

Deprive Possession

The act of taking away or denying someone's access or ownership of property or an object.

Eviction

Depriving the tenant of the possession of leased premises.