Buffalo Hardware Company’s payroll for November 2017 is summarized below.
Amount Subject to Payroll Taxes
Unemployment Tax
Payroll Wages Due FICA Federal State
Factory $121,100 $121,100 $39,800 $39,800
Sales 35,100 35,100 3,600 3,600
Administrative 39,400 39,400
Total $195,600 $195,600 $43,400 $43,400
At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee’s wages to $118,500 and 1.45% in excess of $118,500. Of the $195,600 wages subject to FICA tax, $19,700 of the sales wages is in excess of $118,500. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $15,400 for factory, $6,600 for sales, and $5,500 for administrative.
Exercise 13-7 Buffalo Hardware Company’s payroll f
Exercise 13-7 Buffalo Hardware Company’s payroll f
Prepare a schedule showing the employer’s total cost of wages for November by function. (Round answers to 0 decimal places, e.g. 5,275.)
Factory Sales Administrative Total
Salaries and Wages $ $ $ $
FICA Taxes
FUTA Taxes
SUTA Taxes
Total Cost $ $ $ $
Show List of Accounts
Exercise 13-7 Buffalo Hardware Company’s payroll f
Exercise 13-7 Buffalo Hardware Company’s payroll f
Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer’s payroll taxes. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,125.)
Account Titles and Explanation Debit Credit
Factory Payroll:
(To record salaries and wages expense.)
(To record payroll tax expense.)
Sales Payroll:
(To record salaries and wages expense.)
(To record payroll tax expense.)
Administrative Payroll:
(To record salaries and wages expense.)
(To record payroll tax expense.)
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Ответ:
B
Explanation:
The fact that money "enables people to transfer purchasing power from the present to the future" refers to the STORE OF VALUE function of money.