Accounting Assignment

Accounting Assignment

Payroll Accounting

a. Deductions to record the payroll entries are as following:

Deductions of Taxes from Payroll

 

Earning

Tax rate

Amount of Deductions

Social Security Tax

55000

6%

3300

Medicare Taxes

130000

1.50%

1950

Federal Income Taxes Withheld

 

 

7500

State Income Taxes

45000

5%

2250

Insurance Withholdings

45000

1%

450

Federal Unemployment Taxes

7000

0.80%

56

State Unemployment Taxes

7000

5.40%

378

b. Journal entry to record Brookhaven's payroll tax expense is as following:

Journal entries of Payroll

Date

Account Title

Debit

Credit

31 Dec 2XXX

Payroll Expense

5684

 

 

Social Security Taxes

 

3300

 

Medicare Taxes

 

1950

 

State Unemployment Taxes

 

378

 

Federal Unemployment Taxes

 

56

Current Liabilities: Entries and Disclosure

Journal Entries to record transactions are as following:

Viscotni's

Journal entries

Date

Account Description

Debit

Credit

12-Jan

Cash

20,000

 

 

Notes Payable

 

20,000

 

To record amount borrowed

 

 

 

 

 

 

12-Jan

Interest Expense

750

 

 

Notes Payable

20000

 

 

Cash

 

20750

 

To record principal and interest of amount borrowed

 

 

 

(20000*15%* 3/12 = 750)

 

 

 

 

 

 

02-Oct

Warranty Expense

540

 

 

Accrued Warranty Liability

 

540

 

To record the warranty Liability

 

 

 

(1000*27 = 27000 ...