Barbara is an employee of Baltimore Company. Baltimore Company pays employees the Friday after the wages are earned. Overtime in excess of 40 hours must be paid at 150% of the normal hourly rate.
Question
1) Barbara is an employee of Baltimore Company. Baltimore Company pays employees the Friday after
the wages are earned. Overtime in excess of 40 hours must be paid at 150% of the normal hourly rate. Social Security taxes are 6.2% and Medicare taxes are 1.45%. The federal unemployment tax rate is 1.3% and the state unemployment tax rate is 3.0%. Barbara’s wages, including the current pay period, will not exceed the limits for Social Security, Medicare and unemployment taxes. Barbara earns $18 per hour and worked 48 hours for the week ended January 13 , 2019. Baltimore will withhold $220 federal income taxes. Use this information to determine the total payroll tax expense for Baltimore Company as related to Barbara’s earnings. (Round to the closest cent)
2) The following is the Easton Company adjusted Trial Balance.
Easton Company
Adjusted Trial Balance
December 31, 2018
Account Title
Debit
Credit
Cash
$88,665
Accounts Receivable
232,400
Supplies
17,000
Equipment
395,000
Accumulated Depreciation
$224,260
Accounts Payable
72,555
Capital Stock
220,000
Retained Earnings
127,145
Service Revenue
881,105
Interest Income
5,500
Dividends
9,000
Rent Expense
59,500
Wages Expense
529,000
Supplies Expense
42,000
Utilities Expense
8,000
Depreciation Expense
150,000
________
Totals
$1,530,565
$1,530,565
Use this information to prepare the Single-Step Income Statement for the fiscal year. There are additional lines in the formatted income statement form to allow for authorized alternate presentations
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