Share
Explore BrainMass

Accounting questions

E2-17

Instructions:

a) Fill in the missing amounts
b) Journalize the February paroll and the payment of the payroll.

Please see attached.

Attachments

Solution Preview

1. Since FICA taxes are 8% of the gross earnings. The equation for calculation of FICA tax would be
Gross Earnings X 8% = FICA Tax
Given that FICA Tax is $800, we get the gross earnings to be
Gross Earnings = 800/0.08= $10,000 ( Answer 2 )
Regular Earnings are $8,900, therefore overtime is 10000-8900=$1,100 ( Answer 1)
State Income Taxes are 3% of gross earnings, are 10000 X 3% = $300 ( Answer 3)
Total Deductions are 800+1140+300+100 = $2340 ( Answer 4)
Total Earnings are $10,000, Store Wages are $4,000, therefore Warehouse Wages are 10000-4000=$6,000 ( Answer 5)
2. The journal entry would be
Dr Cr
Warehouse Wages 6,000
Store Wages 4,000
FICA Taxes Payable 800
Federal Income Taxes Payable ...

Solution Summary

The solution has two accounting questions relating to missing amounts in payroll and current liabilities

$2.19