Unit 8 [AC499: Bachelor’s Capstone in Accounting]
Unit 8 Assignment Instructions:
Each Problem (1, 2, 3, and 4) is worth 10 points (40 Points total).
Submit your answers to the Unit 8 Dropbox in a single properly formatted Excel Workbook file.
Use a separate tab in the single Excel document for each problem.
Do not put all 4 problems on the same tab.
Be sure to rename each tab to indicate the question number.
Your answer to this Assignment should be submitted in a single Excel Workbook document.
Question # 1:
Charles Giles worked 46 hours during this pay-week. He is paid time-and-a-half for hours over
40 and his pay rate is $17.90/hour. What was his overtime premium pay for this workweek?
Use the following information to answer Questions 2, 3 & 4:
The totals from the first payroll of the year are shown below.
Total Pay = $36,195.10 FICA/OASDI = $ 2,244.10 FICA/HI = $ 524.83 FIT W/H = $ 6,515.00 State Tax W/H = $ 361.95 Union Dues = $ 500.00 Net Pay = $26,049.22
Assume the following tax rates:
1. * FICA tax—OASDI on employees: 6.2%. 2. FICA tax—HI on employees: 1.45%. 3. FIT withheld from employees. 4. FICA tax—OASDI on employers: 6.2%. 5. FICA tax—HI on employers: 1.45%. 6. Net FUTA tax: 0.6%. 7. SUTA tax: 3.7%.
Note – Correction to the Textbook – The 2% reduction on the Employee’s share of the OASDI expired on December 31, 2012. So, the correct rate to apply is 6.2% for both the employee and the employer.
Unit 8 [AC499: Bachelor’s Capstone in Accounting]
Question # 2: Journalize the entry to record the payroll.
Question # 3: Journalize the entry to record the employer’s payroll taxes (assume a SUTA
rate of 3.7%).
Question # 4: Journalize the entry to deposit the FICA and FIT taxes.
Your answer to this Assignment should be submitted in a single Excel Workbook document.
When you are ready, you may submit your paper to the Unit 8 Dropbox. Note: Include your name in the filename of the Assignment.
Unit 8 Assignment Grading Rubric:
Category/Description Points Possible
Points Earned
Instructor Additional Comments (If necessary)
Questions: Correctly solve each problem. Worth 10 points each.
1- Compute overtime premium pay.
2- Journalize entry to record payroll.
3- Journalize entry to record employer’s payroll taxes
4- Journalize the entry to deposit the FICA and FIT taxes
10
10 10
10
Critical Thinking & Analysis, APA Format/Grammar/Spelling
* Points may be deducted for incorrect analysis, spelling, grammar, and formatting.
Late Penalty * Points may be deducted for late submission.
Final Score 40
