Deacon Company Provides You with Following Information Related to Payroll

question 129

Essay

Deacon Company provides you with following information related to payroll transactions for the month of May. Prepare journal entries to record the transactions for May. $$\begin{array} { | r | r | r | r | r | } \hline \text { Office Salaries } & \text { Sales Salaries } & \begin{array} { r } \text { Social Security } \\\text { Taxes }\end{array} & \text { Medicare Taxes } & \text { Feder al Income Taxes } \\\hline \$ 38,000 & \$ 26,000 & \$ 3,968 & \$ 928 & \$ 5,600 \\\hline\end{array}$$ a. Recorded the May payroll using the payroll register information given above.
b. Recorded the employer's payroll taxes resulting from the May payroll. The company had a merit rating that reduces its state unemployment tax rate to 3.5% of the first $7,000 paid each employee. Only $42,000 of the current months salaries are subject to unemployment taxes. The federal rate is 0.6%.
c. Issued a check to Reliant Bank in payment of the May FICA and employee taxes.
d. Issued a check to the state for the payment of the SUTA taxes for the month of May.
e. Issued a check to Reliant Bank in payment of the employer's quarterly FUTA taxes for the first quarter in the amount of $1,020.

Understand the steps involved in implementing an ABC system.

Recognize the role of cost pools in ABC.

Analyze the effects of using ABC on identifying profitable products.

Understand the development and structure of the Accounting Standards Codification by FASB.

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Definitions:

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the medulla oblongata in the brainstem to the lumbar region of the vertebral column.

Bridge

A structure built to span physical obstacles without closing the way underneath, such as a body of water, valley, or road, for the purpose of providing passage.

Erection

The process by which erectile tissue fills with blood and becomes firm, typically in response to sexual arousal.

Spinal Reflex

An automatic response controlled by the spinal cord without conscious brain involvement.