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Corporate Finance Assignment/ Professional Essay Writers

Bailey Dry Cleaners has six employees who were paid the following wages during 2007:

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Frank Johnson ……………….. $ 27,000
Bill Long ………………………. 18,000
Duff Morse ……………………. 95,000
Laura Stewart …………………. 28,000
Cindy Sharpe ………………….. 26,000
Melissa Ledbetter ……………… 20,000
Total …………………………. $214,000

descriptive essay on democracy
The state allows the company a 1% unemployment compensation merit-rating reduction from the normal rate of 5.4%. The federal unemployment rate is 0.8%. The maximum unemployment wages per employee are $7,000 for both the state and the federal government. Income tax withholdings of 20% are applied to all employees. An 8% F.I.C.A. tax for both employees and employers is applied to the first $90,000 of each employee’s wages.

Required:

1. Calculate the amount of payroll taxes to be paid by Bailey.

2. Prepare the journal entries to record the payment of payroll and the payroll tax expense.  Get FInance Help Today

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