Marty’s German Restaurants incurred salary expense of $70,000 for 2012. The payroll expense includes employer FICA tax of 7.65%, in addition to state unemployment tax of 5.4% and federal unemployment tax of .8%. Of the total salaries, $15,000 is subject to unemployment tax. Also, the company provides the following benefits for employees health insurance (cost to the company $3050), life insurance (cost to the company, $400), and retirement benefits (cost to the company, 5% of salary expense.)
Directions: Journalize Marty’s expenses for employee benefits and for payroll taxes. Explanations are not required.
DATE
DESCRIPTION
REF
DEBIT
CREDIT
PROBLEM #6
(20 Points)
JarJar Company had the following series of transactions:
11/01/11 JarJar Company borrowed $18,000 by issuing a 12%, 1 year note.
12/1/11 JarJar Company borrowed $25,000 by issuing a 8%, 6 month note.
5/1/12 JarJar paid the full payment due of Note 2.
11/01/12 JarJar paid the full payment due of Note 1
Directions:
1) Record all necessary journal entries for JarJar Company for 2011
2) Record all necessary journal entries for JarJar Company for 2012
Explanations are not required.
DATE
DESCRIPTION
REF
DEBIT
CREDIT
PROBLEM #7
(10 Points)
At the end of February, the payroll registry for Death Star Corporation showed $270,000 in total salaries for the month and federal income taxes withheld as $63,350. Other taxes are as follows:
FICA-Social Security 6.2%
FICA-Medicare 1.45%
FUTA .8% of first $7,000 per employee
SUTA 4% of first $7,000 per employee
Only $30,000 of salaries were subject to unemployment taxes. All salaries are subject to FICA taxes.
Directions:
1) Prepare the journal entry to record the January salaries expense and withholdings.
2) Prepare the journal entry to record the employer’s payroll taxes for January.
Please include explanations.
DATE
DESCRIPTION
REF
DEBIT
CREDIT
...
Basic Civil Engineering first year Notes- Chapter 4 Building.pptx
Marty’s German Restaurants incurred salary expense of $70,000 for .docx
1. Marty’s German Restaurants incurred salary expense of $70,000
for 2012. The payroll expense includes employer FICA tax of
7.65%, in addition to state unemployment tax of 5.4% and
federal unemployment tax of .8%. Of the total salaries, $15,000
is subject to unemployment tax. Also, the company provides the
following benefits for employees health insurance (cost to the
company $3050), life insurance (cost to the company, $400),
and retirement benefits (cost to the company, 5% of salary
expense.)
Directions: Journalize Marty’s expenses for employee benefits
and for payroll taxes. Explanations are not required.
DATE
DESCRIPTION
REF
DEBIT
CREDIT
2.
3.
4. PROBLEM #6
(20 Points)
JarJar Company had the following series of transactions:
11/01/11 JarJar Company borrowed $18,000 by issuing a 12%,
1 year note.
12/1/11 JarJar Company borrowed $25,000 by issuing a 8%, 6
month note.
5/1/12 JarJar paid the full payment due of Note 2.
11/01/12 JarJar paid the full payment due of Note 1
Directions:
1) Record all necessary journal entries for JarJar Company for
2011
2) Record all necessary journal entries for JarJar Company for
2012
Explanations are not required.
DATE
DESCRIPTION
REF
DEBIT
CREDIT
8. At the end of February, the payroll registry for Death Star
Corporation showed $270,000 in total salaries for the month and
federal income taxes withheld as $63,350. Other taxes are as
follows:
FICA-Social Security 6.2%
FICA-Medicare 1.45%
FUTA .8% of first $7,000 per
employee
SUTA 4% of first $7,000 per
employee
Only $30,000 of salaries were subject to unemployment taxes.
All salaries are subject to FICA taxes.
Directions:
1) Prepare the journal entry to record the January salaries
expense and withholdings.
2) Prepare the journal entry to record the employer’s payroll
taxes for January.
Please include explanations.
DATE
DESCRIPTION
REF
DEBIT
CREDIT
