Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 103

Other accrued liabilities—payroll The following summary data for the payroll period ended on November 14, 2009, are available for Brac Construction Ltd.:

Gross pay	$ ?
FICA tax withholdings	?
Income tax withholdings	13,760
Medical insurance contributions	1,120
Union dues	640
Total deductions	21,640
Net pay	58,360

Required:

a. Calculate the missing amounts and then determine the FICA tax withholding percentage.

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b. Use the horizontal model (or write the journal entry) to show the effects of the payroll accrual.

Step 1 of 4

Other accrued liabilities related to payroll and payroll taxes:

Accrued liabilities : An accounting term for an expense item that a company has incurred but has not yet paid.

By extracting the information: