1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
zhenek [66]
3 years ago
6

Emily Turnbull, president of Aerobic Equipment Corporation, is concerned about her employees' well-being. The company offers its

employees free medical, dental, and life insurance coverage. It also matches employee contributions to a voluntary retirement plan up to 5% of their salaries. Assume that no employee's cumulative wages exceed the relevant wage bases. Payroll information for the biweekly payroll period ending January 24 is listed below.
Wages and salaries $2,300,000
Employee contribution to voluntary retirement plan 115,000
Medical insurance premiums paid by employer 46,000
Dental insurance premiums paid by employer 16,100
Life insurance premiums paid by employer 8,050
Federal and state income tax withheld 494,500
FICA tax rate 7.65%
Federal and state unemployment tax rate 6.20%

1. Record the employee salary expense, withholdings, and salaries payable (or say No journal entry required.)

2. Record the employer-provided fringe benefits (or say No journal entry required.)

3. Record the employer payroll taxes (or say No journal entry required.)
Business
1 answer:
Ira Lisetskai [31]3 years ago
7 0

Answer:

SEE EXPLANATION

Explanation:

Given the following;

Wages and salaries = $2,300,000

Employee contribution to voluntary retirement plan = $115,000

Medical insurance premiums paid by employer = $46,000

Dental insurance premiums paid by employer = $16,100

Life insurance premiums paid by employer = $8,050

Federal and state income tax withheld = $494,500

FICA tax rate = 7.65%

Federal and state unemployment tax rate = 6.20%

1.)

Salaries and Wages = $2,300,000

FICA taxes payable = 0.0765 * 2300000 = ($175,950)

Income tax withheld = ($494,500)

Employee contribution to voluntary retirement plan = ($115,000)

Salaries payable = $2300000 - $(175950 + 494500 + 115000) = $1,514,550

B.) BENEFITS

Accounts payable (Retirement plan) = $115,000

Life Insurance premium = $8,050

Medical insurance premium = $46,000

Dental insurance premium = $16,100

TOTAL BENEFIT = $(115,000 + 8050+46000+16100) = $185,150

C.) PAYROLL TAXES:

Unemployment tax payable $2,300,000 x 6.20% = $142,600

FICA tax payable 7.65% * $2,300,000 = $175,950

PAYROLL tax = $(175,950+142,600) = $318,550

You might be interested in
Jose visited a garage sale and found a baseball card collection which he believed was worth over $1,000. he bought the collectio
Effectus [21]

Wanda does not have to refund his money. Wanda never said the collection was worth 1000 dollars or wroth anything.  Jose assumed the value and paid the asking price. Wanda has no legal obligation to refund the money.

4 0
3 years ago
Quip Corporation wants to purchase a new machine for $300,000. Management predicts that the machine will produce sales of $200,0
butalik [34]

Answer:

net present value NPV = $79800

so correct option is D) $79,800

Explanation:

solution

we knw that Net Present value = PV of cash inflow - PV of cash outflow    ............1

so here PV of cash outflow = $300000  

and Net sales = $200000

expenses = $80000

Depreciation =  \frac{300000-50000}{5}

Depreciation =  $50000

so Net income before taxes  = Net sales - Depreciation - expenses

Net income before taxes =  $200000  - $80000 - $50000

Net income before taxes =  $70000

and Tax expenses @ 40% = $28000

so

Net income = Net income before taxes - Tax expenses

Net income = $70000  - $28000

Net income = $42000

and

Depreciation = $50000

Net cash inflow =  Net income + Depreciation

Net cash inflow =  $42000  + $50000

Net cash inflow = $92000

and

PVIFA @ 10% 5 years = $3.7908

so

PV of cash inflow = $348755

PV of salvage value = $50000 ×0.6209

PV of salvage value = $31045

and

so here  Total PV of total cash inflow = $379800

and

net present value  NPV =  Total PV of total cash inflow - PV of cash outflow

net present value NPV = $379800 - $300000

net present value NPV = $79800

so correct option is D) $79,800

7 0
3 years ago
What are important information that is needed before you create a PowerPoint presentation
mr_godi [17]
How to copy and paste and be creative
5 0
3 years ago
Your college bookstore is responsible for the gathering, sorting, and dispersing of books required for a literature course on ca
Nataly [62]

The function of <em>gathering, sorting, and dispersing</em> books required for a literature course by the college bookstore is an example of <em>b. logistical functions that intermediaries perform.</em>

The bookstore is an intermediary between the students (customers) and the publishers (suppliers) of the literature book. The bookstore <em>is not performing a transactional, transitional, or facilitating function. </em>

Thus, the college bookstore performs a logistical function by managing the <em>inventory, transportation, and warehousing needs</em> of the college.

Learn more:brainly.com/question/18686811

5 0
2 years ago
Given :
KIM [24]

Answer:  

Direct Method

          Operting Activities

$1,390 Cash Collected from Services

-$7,864 Cash to rent Equipment

-$0,864 Cash to repair facilities

$24,285  Collected from customers  

        Financing Activities

-$0,150  Repaid Long Term  

$16,797  Net Cash  

Explanation:

These others activities are not included because doesn't inclulde movements of cash.

(2) Purchased new equipment costing $3,434; signed a long-term note.

8 0
3 years ago
Other questions:
  • Sleek Designs Inc. is producing its first eReader. The company is striving to overcome some of the issues communicated by custom
    8·1 answer
  • Lionel joined the International Council on Hotel, Restaurant and Institutional Education for career guidance. Which profession i
    5·1 answer
  • What is the term used to describe the impact of the manufacturing process on the entire economy?
    15·1 answer
  • What type of inmate labor system puts inmates to work cleaning public parks and maintaining roads and highways?select one:?
    8·1 answer
  • During his conference with Lynn, Michael listens carefully to Lynn's complaints about anything and everything, identifies and wr
    12·1 answer
  • Under the equity method, the receipt of cash dividends on an investment in common stock of vallerio corporation is accounted for
    13·1 answer
  • Keplem has a business unit in the insurance sector. The insurance sector is a slow-growing industry, and Keplem does not have a
    14·1 answer
  • What can you say when you want to contact people for sponsorship
    10·2 answers
  • Zoey Bella Company has a payroll of $6,200 for a five-day workweek. Its employees are paid each Friday for the five-day workweek
    8·1 answer
  • Dobson Construction specializes in the construction of commercial and industrial buildings. The contractor is experienced in bid
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!