Please finish all questions. Employee earnings records for Slaymaker Company rev
ID: 2432130 • Letter: P
Question
Please finish all questions. Employee earnings records for Slaymaker Company reveal the following gross earnings for four employees through the pay period of December 15. $92,000 $114,500 $116,000 $125,000 L. Marshall . Seligman R. Eby T, Olson For the pay period ending December 31, each employee's gross earnings is $4,500. The FICA tax rate is 6.2% on gross earnings of $117,000, plus an additional 1.45% on all salary and wages without limitation. Compute the FICA withholdings that should be made for each employee for the December 31 pay period. (Round answers to 2 decimal places, e.g.52.75.) . Seligman s L. Marshall R. Eby T. Olson 0 Question Attempts: O of 3 usedExplanation / Answer
J.Seligman: Gross earnings upto Dec 15=$92000 Gross earnings for Dec 31.=$4500 4500 is within $117000 limit FICA withholding=4500*(6.2%+1.45%)=$ 344.25 L.Marshall: Gross earnings upto Dec 15=$116000 Gross earnings for Dec 31.=$4500 $1000 of $4500 is within $117000 limit. FICA withholding=(1000*6.2%)+(4500*1.45%)=$ 127.25 R.Eby: Gross earnings upto Dec 15=$114500 Gross earnings for Dec 31.=$4500 $2500 of $4500 is within $117000 limit. FICA withholding=(2500*6.2%)+(4500*1.45%)=$ 220.25 T.Olson: Gross earnings upto Dec 15=$125000 Gross earnings for Dec 31.=$4500 $4500 is outside $117000 limit. FICA withholding=(4500*1.45%)=$ 65.25 1 Interest expense from August to dec (For 5 months)=72720*6%*5/12=$ 1818 2 Cash register includes sales tax also. Sales tax rate is 5% Hence, Cash register amount is 105% Sales tax payable=(44100/105)*5=$ 2100 3 Subscription revenue from Nov to Dec (For 2 months should be recognized as revenue=(44400/6)*2=$14800 Balance sheet Assets $ $ Current assets Cash 2100 Short-term investments 3600 Accounts receivable 1400 Inventory 1400 Prepaid insurance 790 Total current assets 9290 Long-term investment 200 Property,Plant and equipment: Equipment 11500 Less:Accumulated depreciation 6000 5500 Total assets 14990 Laibilities and Owner's equity Current Liabilities: Notes payable 500 Accounts payable 1400 1900 Long-term liabilities: Notes payable 400 Long-term debt 1000 1400 Owner's capital 11690 Total Laibilities and Owner's equity 14990