ACC 205 Week 4 Assignment Liability
Purchase here
http://chosecourses.com/acc-205-week-4-assignment-liability
Description
Liability. Please complete each of the exercises below in a word document. Save the document, and
submit it in the appropriate week using the Assignment Submission button.
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 per employee
Medicare taxes: 1.5% on the first $130,000 earned per employee
Federal income taxes withheld from wages: $7,500
State income taxes: 4% of gross earnings
Insurance withholdings: 1% of gross earnings
State unemployment taxes: 5.4% on the first $7,000 earned per employee
Federal unemployment taxes: 0.8% on the first $7,000 earned per employee
The company incurred a salary expense of $50,000 during February. All employees had earned
less than $5,000 by month-end and no wages have been paid during the month.
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
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
2. Current liabilities: entries and disclosure. A review of selected financial activities of Visconti’s
during 20XX disclosed the following:
Instructions
a. Prepare journal entries to record the transactions.
b. Prepare adjusting entries on December 31 to record accrued interest.
c. Prepare the Current Liability section of Red Bank’s balance sheet as of December 31. Assume
that the Accounts Payable account totals $203,600 on this date....