Soluzioni esercizi di Contabilità generale e bilancio, appendix I

SOLUTIONS TO EXERCISES

EXERCISE I-1

(a) 1. Regular 40 X $14.00 = $560.00

Overtime 6 X $21.00 = 126.00

Gross earnings $686.00

2. FICA taxes—$52.48 = ($686 X 7.65%).

3. Federal income taxes $29.

4. State income taxes $13.72 = ($686 X 2%).

5. Net pay $560.80 = ($686.00 – $52.48 – $29.00 – $13.72 – $30.00).

(b) Salaries and Wages Expense................................... 686.00

FICA Taxes Payable .......................................... 52.48

Federal Income Taxes Payable......................... 29.00

State Income Taxes Payable ............................ 13.72

Health Insurance Payable ................................. 30.00

Salaries and Wages Payable ............................ 560.80

EXERCISE I-2

J. Seligman $4,500 X 7.65% = $344.25 Seligman’s total gross earnings

for the year are $98,000 ($93,500 + $4,500), which is below

the $117,000 maximum for FICA taxes.

R. Eby ($3,400 X 6.2%) + ($4,500 X 1.45%) = $276.05. Eby’s total

gross earnings for the year are $113,600. Thus, only $3,400

of the gross earnings for this pay period are subject to

Social Security taxes. In addition, $4,500 is subject to

Medicare (1.45%) taxes.

L. Marshall ($1,900 X 6.2%) + ($4,500 X 1.45%) = $183.05. Marshall’s

total gross earnings for the year are $115,100. Thus, only

$1,900 of the gross earnings for this pay period are subject

to Social Security taxes. In addition, $4,500 is subject to

Medicare taxes.

T. Olson ($4,500 X 1.45%) = $65.25 Olson's gross earnings prior to

this pay period exceed the maximum amount subject to

Social Security taxes. However, all of the gross earnings

in the December 31 pay period are subject to Medicare

taxes.

EXERCISE I-3

(a) See next page.

(b) Jan. 31 Salaries and Wages Expense............... 1,688.00

FICA Taxes Payable ...................... 129.13

Federal Income Taxes Payable .... 135.00

Health Insurance Payable ............. 53.00

Salaries and Wages Payable ........ 1,370.87 EXERCISE

I-3

(Continued)

(a) WELSTEAD COMPANY

Payroll Register

For the Week Ending January 31

Earnings Deductions

Total Gross FICA Federal Health Net

Employee Hours Regular Overtime Pay Taxes Income Taxes Insurance Total Pay

W. Jeong 44 $ 440.00 $ 66.00 $ 506.00 $ 38.71 $ 34.00 $18.00 $ 90.71 $ 415.29

C. Garrison 42 520.00 39.00 559.00 42.76 43.00 15.00 100.76 458.24

J. Buss 43 560.00 63.00 623.00 47.66 58.00 20.00 125.66 497.34

Totals $1,520.00 $168.00 $1,688.00 $129.13 $135.00 $53.00 $317.13 $1,370.87

EXERCISE I-3 (Continued)

(b) Jan. 31 Payroll Tax Expense ................................ 233.78

FICA Taxes Payable.......................... 129.13

Federal Unemployment Taxes

Payable ($1,688 X .8%) ................. 13.50

State Unemployment Taxes

Payable ($1,688 X 5.4%) ............... 91.15

EXERCISE I-4

(a) (1) $1,100 [$10,000 see (2) below – $8,900].

(2) $10,000 (FICA taxes $765 ÷ 7.65%).

(3) $400 ($10,000 X 4%).

(4) $2,660 ($10,000 – $7,340).

(5) $6,000($10,000 – $4,000).

(b) Feb. 28 Salaries and Wages Expense............. 10,000

FICA Taxes Payable .................... 765

Federal Income Taxes

Payable..................................... 1,395

State Income Taxes Payable....... 400

Union Dues Payable .................... 100

Salaries and Wages Payable ...... 7,340

28 Salaries and Wages Payable .............. 7,340

Cash ............................................. 7,340

EXERCISE I-5

(a) FICA tax ($789,000 X 6.2%) + ($850,000 X 1.45%) ... $61,243

SUTA tax ($70,000 X 5.4%)........................................ 3,780

FUTA tax ($70,000 X 0.8%)........................................ 560

Total payroll tax ................................................. $65,583

(b) Payroll Tax Expense ................................................. 65,583

FICA Taxes Payable........................................... 61,243

State Unemployment Taxes Payable................ 3,780

Federal Unemployment Taxes Payable............ 560

IMA: Reporting SOLUTIONS

(a) ETHRIDGE DRUG STORE

Payroll Register

For the Week Ended February 15, 2017 PROBLEM

Earnings Deductions TO

Over- Gross

Employee Hours Regular time Pay FICA Fed. State U.F. Total Net Pay

A. Joseph 38 532.00 0 532.00 40.70 22.00 15.96 0 78.66 453.34 PROBLEMS

J. Wilgus 42 520.00 39.00 559.00 42.76 9.00 16.77 5.00 73.53 485.47 I-1A

P. Kirk 44 480.00 72.00 552.00 42.23 57.00 16.56 7.50 123.29 428.71

L. Zhang 48 480.00 144.00 624.00 47.74 52.00 18.72 5.00 123.46 500.54

Totals 2,012.00 255.00 2,267.00 173.43 140.00 68.01 17.50 398.94 1,868.06

PROBLEM I-1A (Continued)

(b) Feb. 15 Salaries and Wages Expense............. 2,267.00

FICA Taxes Payable .................... 173.43

Federal Income Taxes

Payable..................................... 140.00

State Income Taxes Payable....... 68.01

United Fund Contributions Payable 17.50

Salaries and Wages Payable ...... 1,868.06

15 Payroll Tax Expense ........................... 313.99

FICA Taxes Payable

($2,267 X 7.65%) ...................... 173.43

Federal Unemployment Taxes

Payable ($2,267 X .8%) ............ 18.14

State Unemployment Taxes

Payable ($2,267 X 5.4%) .......... 122.42

(c) Feb. 16 Salaries and Wages Payable .............. 1,868.06

Cash ............................................. 1,868.06

(d) Feb. 28 FICA Taxes Payable

($173.43+ $173.43)........................... 346.86

Federal Income Taxes Payable .......... 140.00

Cash ............................................. 486.86

PROBLEM I-2A

(a) Jan. 10 Union Dues Payable ...................... 250.00

Cash ........................................ 250.00

12 FICA Taxes Payable....................... 662.20

Federal Income Taxes Payable ..... 1,254.60

Cash ........................................ 1,916.80

15 U.S. Savings Bonds Payable......... 350.00

Cash ........................................ 350.00

17 State Income Taxes Payable ......... 102.15

Cash ........................................ 102.15

20 Federal Unemployment Taxes

Payable ....................................... 312.00

State Unemployment Taxes

Payable ....................................... 1,954.40

Cash ........................................ 2,266.40

31 Salaries and Wages Expense........ 46,200.00

FICA Taxes Payable ............... 3,534.30

Federal Income Taxes

Payable ............................... 1,770.00

State Income Taxes

Payable ............................... 360.00

Union Dues Payable............... 400.00

United Fund Contributions

Payable ............................... 1,800.00

Salaries and Wages Payable . 38,335.70

31 Salaries and Wages Payable......... 38,335.70

Cash ........................................ 38,335.70

PROBLEM I-2A (Continued)

(b) Jan. 31 Payroll Tax Expense ........................... 6,398.70

FICA Taxes Payable

($46,200 X 7.65%)................... 3,534.30

Federal Unemployment Taxes

Payable ($46,200 X .8%) ........ 369.60

State Unemployment Taxes

Payable ($46,200 X 5.4%) ...... 2,494.80

PROBLEM I-3A

(a) Salaries and Wages Expense................................ 490,000

FICA Taxes Payable ....................................... 35,005*

Federal Income Taxes Payable...................... 108,000

State Income Taxes Payable ......................... 12,740

United Fund Contributions Payable.............. 25,000

Health Insurance Payable .............................. 26,800

Salaries and Wages Payable ......................... 282,445

(b) Payroll Tax Expense .............................................. 38,635

FICA Taxes Payable ...................................... 35,005*

Federal Unemployment Taxes Payable

($110,000 X .8%) ......................................... 880

State Unemployment Taxes Payable

($110,000 X 2.5%) ....................................... 2,750

*($45,000 X 6.2%) + ($490,000 X 1.45%)

(c) Federal State

Wages, Income Income

Tips, Other Tax Tax FICA FICA Tax

Employee Compensation Withheld Withheld Wages Withheld

S. Brand $56,000 $18,500 $1,456 (1) $56,000 $4,284

R. Morin 27,000 11,000 702 (2) 27,000 2,066

(1) $56,000 X 2.6%.

(2) $27,000 X 2.6%. PROBLEM I-4A

(a) Weaknesses (b) Recommended Procedures

1. Hours worked are marked Time cards should be

 

on time card by punched by a time clock and

employee. the punching of the clock by

employees should be

supervised so that one

employee cannot punch

more than one card.

Employees give the The manager should deliver

 

approved cards to payroll. the cards to payroll in order

to prevent possible altera-

tions by employees during

delivery.

2. Department manager Rates of pay should be

 

indicates the rates of pay. authorized in writing by

the human resources

department.

The department manager The treasurer’s department

 

pays the employees. should pay employees.

Payment is in cash. Payment should be made by

  check.

3. Manager prepares payroll The payroll department

 

register which is sent to should prepare the payroll

the payroll department. register on the basis of the

clock cards approved by the

manager.

A payroll supervisor pays Payment to employees

 

each employee by check. should be made by the

treasurer’s department.

IMA: Reporting (a) RALPH’S HARDWARE

Payroll Register

For the Week Ending March 15, 2017

Earnings Deductions PROBLEM

Over- Gross

Employee Hours Regular time Pay FICA Fed. State U.F. Total Net Pay

K. Litwack 40 600.00 0 600.00 45.90 38.00 27.00 5.00 115.90 484.10

E. Burgess 46 520.00 117.00 637.00 48.73 24.00 28.67 5.00 106.40 530.60 I-1B

R. Perez 44 520.00 78.00 598.00 45.75 60.00 26.91 8.00 140.66 457.34

H. Hosseini 48 520.00 156.00 676.00 51.71 67.00 30.42 5.00 154.13 521.87

Totals 2,160.00 351.00 2,511.00 192.09 189.00 113.00 23.00 517.09 1,993.91

PROBLEM I-1B (Continued)

(b) Mar. 15 Salaries and Wages Expense............. 2,511.00

FICA Taxes Payable .................... 192.09

Federal Income Taxes

Payable .................................... 189.00

State Income Taxes Payable ...... 113.00

United Fund Contributions

Payable .................................... 23.00

Salaries and Wages Payable ...... 1,993.91

15 Payroll Tax Expense ........................... 347.77

FICA Taxes Payable

($2,511 X 7.65%) ...................... 192.09

Federal Unemployment Taxes

Payable ($2,511 X .8%) ............ 20.09

State Unemployment Taxes

Payable ($2,511 X 5.4%) .......... 135.59

(c) Mar. 16 Salaries and Wages Payable.............. 1,993.91

Cash ............................................. 1,993.91

(d) Mar. 31 FICA Taxes Payable

($192.09 + $192.09) ......................... 384.18

Federal Income Taxes Payable .......... 189.00

Cash ........................