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Solved Problem 14.1 How many exemptions are permitted to be claimed on Form W-4 in the following cases: (a) Taxpayer and spouse (b) Taxpayer, spouse, and two children (c) Taxpayer, spouse, and mother she fully supported Solution: (a) 2; (b) 4; (c) 3 Solved Problem 14.2 Judy Bogan worked 44 hours during the rst week in February of the current year. The pay rate is \$9 per hour. Withheld from her wages were FICA; federal income tax, \$47; hospitalization, \$7.20. Prepare the necessary payroll entry.
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CHAPTER 14: Payroll Solution: Salaries Expense 414* FICA Social Security Payable 25.67 FICA Medicare Payable 6.00 Federal Income Tax Payable 47.00 Hospitalization Payable 7.20 Salaries Payable 328.13 *40 hours times \$9 = \$360 (regular pay) 4 hours times \$13.50 = \$54 (overtime pay) \$360 + \$54 = \$414 (total pay)
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Solved Problem 14.3 Based on the information in Solved Problem 14.2, what is the entry to record the employer s payroll tax if it is assumed the state tax rate is 4 percent and the federal unemployment rate is 0.8 per cent (Prior to payroll) earnings to date = \$5,100. Solution: Payroll Tax Expense 51.54 FICA Social Security Payable 25.67 FICA Medicare Payable 6.00 Federal Unemployment Insurance Payable 3.31 State Unemployment Insurance Payable 16.56
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Tangible assets that are relatively permanent and are needed for the production or sale of goods or services are termed property, plant, and equipment (PP&E), or xed assets. These assets are not held for sale in the ordinary course of business. The broad group is usually separated into classes ac cording to the physical characteristics of the items, for example land, buildings, machinery and equip ment.
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