Purchase Solution

Accruals and Deferrals

Not what you're looking for?

Ask Custom Question

Question 1

Company DEF has three employees and does the payroll every Friday. Determine the gross pay, total deductions and net pay for each employee. Use the following for FICA: Cap = $100,000, rates are 6% for social security and 1.5% for Medicare.

Steve--worked 45 hours and earns $30/hour. His year to date earnings are $99,300. Besides FICA he has deductions of $250 for federal income tax, $125 for state income tax and $75 for union dues.

Mary---worked 45 hours and earns a salary of $52,000 per year. Her year to date earnings are $43,200. Besides FICA she has deductions of $185 in federal income tax, $100 for state income tax, and $40 for her medical insurance premium.

Pete----worked 30 hours and earns $20 per hour. His year to date earnings are $24,435. besides FICA he has deductions of $70 for federal income tax, $42 for state income tax and $25 for union dues.

Question 2
The following totals appear in the payroll register of Company ABC. of our employees. These are the totals of all employees.

Gross Pay..........................$25,000

Social security...................$1500

Medicare...........................$375

Federal income tax............$4500

State income tax...............$2000

Union dues.......................$150

Medical Premium..............$200

Total deductions..............$8725

Net Pay..........................$16,275

All employee wages are subject to FUT and SUT. Our SUT rate is 5% and our FUT rate is 1%.

Prepare the journal entries to record the payroll, pay the payroll, and record the payroll taxes.

Question 3
Provide the necessary adjusting entries for December 31

1. Wages owed to our employees totaled $2400.

2. Depreciation on our truck was $1200.

3. Supplies used for the period was $500

4. Insurance expired was $1300.

5. Income tax owed but not yet paid was $10,000.

Purchase this Solution

Solution Summary

Accurals and deferrals are examined.

Purchase this Solution


Free BrainMass Quizzes
MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Basics of corporate finance

These questions will test you on your knowledge of finance.