ACC 304 All Assignments ACC 304 All Assignments | Page 228

At this point in the year, some employees have already received wages
in excess of those to which payroll taxes apply. Assume that the state
unemployment tax is 2.5%. The FICA rate is 7.65% on an employee’s
wages to $114,600 and 1.45% in excess of $114,600. Of the $289,600
wages subject to FICA tax, $22,000 of the sales wages is in excess of
$114,600. Federal unemployment tax rate is 0.8% after credits. Income
tax withheld amounts to $16,570 for factory, $6,110 for sales, and
$5,010 for administrative.
6) No Doubt Company includes 1 coupon in each box of soap powder
that it packs, and 10 coupons are redeemable for a premium (a kitchen
utensil). In 2014, No Doubt Company purchased 8,840 premiums at 70
cents each and sold 122,500 boxes of soap powder at $3.40 per box;
50,000 coupons were presented for redemption in 2014. It is estimated
that 60% of the coupons will eventually be presented for redemption.
Prepare all the entries that would be made relative to sales of soap
powder and to the premium plan in 2014. (Round answers to 0 decimal
places, e.g. 5,275. If no entry is required, select "No Entry" for the
account titles and enter 0 for the amounts. Credit account titles are
automatically indented when amount is entered. Do not indent
manually.)
Account Titles and Explanation
Debit Credit