« previous next »

Author Question: The following data comes from the payroll department of LoJack Corporation for the last pay period ... (Read 26 times)

Haya94

  • Hero Member
  • *****
  • Posts: 558
on: Jul 5, 2018
The following data comes from the payroll department of LoJack Corporation for the last pay period of 2011. Employees will not be paid until 2012.
 
  Gross employee earnings 330,000
  Federal income taxes withheld 48,000
  FICA Social Security taxes withheld 20,460
  Medicare taxes withheld 4,785
 
  Required:
  1. Determine the amount the balance sheet will report as Wages payable.
  2. Determine the amount the income statement will report as Wages expense from this pay period.
  3. What type of liability is Wages payable?
  4. To what party must the company pay the FICA taxes?
  5. Why does LoJack have to withhold taxes from its employees?
  What will be an ideal response?

Question 2

A clerk receives checks and customer receipts in the mail. He endorses the checks, fills out the deposit slip, and posts the checks to the cash receipts events data. The clerk is exercising which functions?
 a. recording and executing events
  b. authorizing and executing events
  c. recording and authorizing events
  d. safeguarding of resources and authorizing events


flannelavenger

  • Sr. Member
  • ****
  • Posts: 322
Reply #1 on: Jul 5, 2018
Answer to Question 1

1. 256,755 = 330,000  48,000  20,460  4,785
2. 330,000
3. definitely determinable current liability
4. to the federal government (US Treasury), usually by deposit in a local bank
5. Federal law requires that employers withhold taxes from employees.

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Electronic service information is available from aftermarket sources, such as All-Data and ... Electronic service information is available from aftermarket sources, such as All-Data and ...
End of last glacial period End of last glacial period
Anthropocene Period Anthropocene Period
Basic Marketing Research: Using Microsoft Excel Data Analysis Basic Marketing Research: Using Microsoft Excel Data Analysis
State the amplitude, period, equation of the axis, and maximum and minimum value State the amplitude, period, equation of the axis, and maximum and minimum value
Satellite data on primary productivity in the equatorial Pacific Ocean Satellite data on primary productivity in the equatorial Pacific Ocean
Video: How to find out if a population is evolving?

For a complete list of videos, visit our video library