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Recording Payment of the Payroll Denardos Country Store pays its employees on a biweekly
Chapter 17, Problem 17-4(choose chapter or problem)
Recording Payment of the Payroll
Denardo’s Country Store pays its employees on a biweekly basis. This week the payroll is $2,000. You issued Check 949 for $1,487 in payment of the payroll less the following amounts: Employees’ Federal Income Tax, $320; Employees’ State Income Tax, $40; Social Security Tax, $124; and Medicare Tax, $29.
Instructions In your working papers, record the July 15 payroll on page 4 of the cash payments journal.
Calculate the total deductions from employees’ wages for federal, state, social security, and Medicare taxes. What percentage of gross payroll is this amount?
Questions & Answers
QUESTION:
Recording Payment of the Payroll
Denardo’s Country Store pays its employees on a biweekly basis. This week the payroll is $2,000. You issued Check 949 for $1,487 in payment of the payroll less the following amounts: Employees’ Federal Income Tax, $320; Employees’ State Income Tax, $40; Social Security Tax, $124; and Medicare Tax, $29.
Instructions In your working papers, record the July 15 payroll on page 4 of the cash payments journal.
Calculate the total deductions from employees’ wages for federal, state, social security, and Medicare taxes. What percentage of gross payroll is this amount?
ANSWER:Step 1 of 3
The special journals are those which list the accounting transactions in a specific type of journal except general journals such as sales journals, purchase journals, cash payment journals, etc. The transactions specific to their nature are recorded accordingly to make accounting more useful.