314 – IMK Chapter 15
Solution to Exercise 15-2 (10): Customer Ledgers
Solution to Exercise 15-2 (10) (Continued): Vendor Ledgers
Payroll, Employees and Account Reconciliation 315 – IMK
Solution to Exercise 15-2 (10) (Concluded): Inventory Valuation
Report
316 – IMK Chapter 15
Solution to Exercise 15-2 (11): General Ledger Trial Balance
Payroll, Employees and Account Reconciliation 317 – IMK
Solution to Exercise 15-2 (12): Balance Sheet
318 – IMK Chapter 15
Solution to Exercise 15-2 (12) (Continued): Income Statement
Payroll, Employees and Account Reconciliation 319 – IMK
Solution to Exercise 15-2 (12) (Concluded): Statement of Cash Flow
320 – IMK Chapter 15
ANSWERS TO GOING TO THE NET
Access Employer W-2 Filing Instructions and Information. The website is
http://www.ssa.gov/employer/. Link to Checklist for W-2/W-3 Online Filing.
The checklist website is http://www.ssa.gov/employer/W2checklist.htm.
Answer these questions.
1. What are dates that employers must send W-2 information to the
Social Security Administration? (Include the dates for both electronic
and paper filing.)
2. When must employers give employees their W-2?
3. What two forms do employers send to the Social Security
Administration?
ANSWERS TO MULTIPLE-CHOICE QUESTIONS, QA TEMPLATES:
In the space provided, type the letter that best answers each question. Or,
boldface the answer.
_____1. The cash account to credit when disbursing checks for Sharon’s
Service Merchandise employees is:
Payroll, Employees and Account Reconciliation 321 – IMK
_____2. The amount withheld from employees’ paychecks depends on:
_____3. Guidelines for employee and employer withholdings are found in
the following IRS publication:
_____4. On the Maintain Employees/Sales Reps window, you enter the
following types of information:
_____5. Taryn Anders received a January 4 paycheck in the amount of:
322 – IMK Chapter 15
_____6. The entry in the General Journal for the transfer of funds on
January 3, 2019 is:
_____7. All of these payroll tax deductions are subtracted from an
employee’s gross pay EXCEPT:
_____8. The Gross Pay Account is:
_____9. Lynn Gale received a January 11 paycheck in the amount of:
Payroll, Employees and Account Reconciliation 323 – IMK
_____10. The maximum taxable earnings subject to social security taxes
can change due to:
ANALYSIS QUESTION
What are the percentages for employee and employer Social Security and
Medicare taxes? Explain FICA.
ANSWER:
Using the year 2019 as an example, Social Security is funded by a 12.4%
tax on wages up to $132,900. Half is paid by employers and half is paid by
employees. The employee’s W-2 Form shows the Federal Income Tax,
State Income Tax, Social Security, and Medicare withheld.
The table compares 2018 and 2019 FICA tax rates and maximum social
security earnings for tax contributions.
Social Security
2018
2019
FICA tax rate:
• Social Security for employees
• Social Security for employers
• Medicare for employees
• Medicare for employers
6.2%
6.2%
1.45%
1.45%
6.2%
6.2%
1.45%
1.45%
Maximum Social Security earnings for tax
contributions
Medicare taxable earnings
$128,400
No limit
$132,900
No limit
Sage 50’s payroll tax calculations are for example purposes only. Payroll
services can be purchased from Sage at https://www.sage.com/en-
us/products/sage-payroll-services/.
For additional information, refer to this website
http://www.imercer.com/content/social_security_figures.aspx.
324 – IMK Chapter 15
ASSESSMENT RUBRIC
Date
Transaction
Navigation
Center/Module
Journal
Dr./Cr.
1/6
Issue payroll Check No.
6050 to Rick Copley for 40
regular hours.
Employees &
Payroll > Pay
Employees > Enter
Payroll for One
Employee
Payroll
Payroll Journal
Dr. 77500, Wages
Expenses, $500
Dr. 72510, Soc.
Sec. Expense, $31
Dr. 72520,
Medicare Expense,
$7.25
Dr. 72530, FUTA
Expense, $3
Dr. 72540, SUTA
Expense, $17
Dr. 72545, SUTA2
Expense, $0.40
Cr. 23400, Federal
Payroll Taxes
Payable, $48.39
Cr. 24000, Soc.
Sec. Employee
Taxes Payable,
$31
$7.25
Cr. 23500, FUTA
Tax Payable, $3
Cr. 23700, SUTA
Payable, $17
Cr. 23755, SUTA2
Payable, $0.40
Cr. 10300, Payroll
Checking Account,
$392.78
SOLUTION FILES
contact your McGraw-Hill sales representative at
https://shop.mheducation.com/store/paris/user/findltr.html.
..
The chart below shows the size of the Chapter 15 solution files (Sage 50
backups, Excel Reports and PDF Reports).
Chapter
Backup (.ptb extension)
Excel (.xlsx) and Adobe (.pdf)
Kilobytes
Page Nos.
15
Chapter 15 Begin.ptb
1,115 KB
562
Chapter 15.ptb
1,162 KB
586
Chapter 15_PayJ_GLTB_BS_IS_SCF.xlsx
33 KB
586
Exercise 15-1_General Journal.pdf
16 KB
591
Exercise 15-1.ptb
1,017 KB
591
Exercise 15-2.ptb
1,047 KB
594
Exercise 15-2_EL_CL_VL_IVR_ PayJ_ GLTB_
BS_IS_SCF.xlsx
45 KB
594
Exercise 15-2_Employee List.pdf
11 KB
594
Exercise 15-2_Vendor Ledgers.pdf
12 KB
594
Exercise 15-2_Customer Ledgers.pdf
12 KB
594
326 – IMK Chapter 15
15
Exercise 15-2_Inventory Valuation Report.pdf
11 KB
594
Exercise 15-2_Payroll Journal.pdf
21 KB
594
Exercise 15-2_General Ledger Trial Balance.pdf
14 KB
594
Exercise 15-2_Balance Sheet.pdf
12 KB
594
Exercise 15-2_Income Statement.pdf
12 KB
594
Exercise 15-2_Statement of Cash Flow.pdf
12 KB
594