finance assignment

Question # 00004918 Posted By: mac123 Updated on: 12/08/2013 04:03 AM Due on: 12/30/2013
Subject Finance Topic Finance Tutorials:
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I do not understand how to work this problem with just the information that I have been given. these numbers are different so I just need to be shown how to do the problem.
1. Payroll accounting. Assume that the following tax rates and payroll information pertain to Brookhaven Publishing:
• Social Security taxes: 6% on the first $55,000 earned
• Medicare taxes: 1.5% on the first $130,000 earned
• Federal income taxes withheld from wages: $7,500
• State income taxes: 5% of gross earnings
• Insurance withholdings: 1% of gross earnings
• State unemployment taxes: 5.4% on the first $7,000 earned
• Federal unemployment taxes: 0.8% on the first $7,000 earned

The company incurred a salary expense of $50,000 during February. All employees had earned less than $5,000 by month-end.
a. Prepare the necessary entry to record Brookhaven’s February payroll. The entry will include deductions for the following:
• Social Security taxes
• Medicare taxes
• Federal income taxes withheld
• State income taxes
• Insurance withholdings
b. Prepare the journal entry to record Brookhaven’s payroll tax expense. The entry will include the following:
• Matching Social Security taxes
• Matching Medicare taxes
• State unemployment taxes
• Federal unemployment taxes
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Tutorials for this Question
  1. Tutorial # 00004709 Posted By: mac123 Posted on: 12/08/2013 04:07 AM
    Puchased By: 2
    Tutorial Preview
    record Brookhaven’s February payroll. ...
    2013-12-07_190122_brookhaven.xls (19.5 KB)

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