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Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall
Edition 9ISBN: 0073527068Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall
Edition 9ISBN: 0073527068
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Step 1 of 3
a. FICA Tax Withholdings (employees portion) = Gross Pay * 7.65%
?? = $53,000 * 7.65% =$4,054.50
Employee Contributions to Pension Plans = (Total Deductions - all other deductions)
= $14,088 - $4.054.50 - $7,680 - $960
=$1,393.50
Net Pay = Gross Pay - Total Deductions
= $53,000 - $14,088 =$38,912
Dr. Wages Expense | 53,000.00 |
|
Cr. Wages Payable (or Accrued Payroll) |
| 38,912.00 |
Cr. FICA Taxes Withheld (employees’ share) |
| 4,054.50 |
Cr. Income Taxes Withheld |
| 7,680.00 |
Cr. Group Hospitalization Insurance |
| 960.00 |
Cr. Employee Contributions to Pension Plan |
| 1,393.50 |
To record accrued payroll.
Step 2 of 3
Step 3 of 3
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