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Answers Key for Payroll Accounting Project Chapter 7.30: Everything You Need to Know Payroll accounting is a complex and challenging topic that requires accuracy and compliance with various legal and regulatory requirements. One of the most important tasks in payroll accounting is conducting a project audit test at the end of the year to verify the correctness of payroll data and transactions. answers key payroll accounting project chapter 7.30 DOWNLOAD: https://www.google.com/url?q=https%3A%2F%2Fssurll.com%2F2tMNGZ&sa=D&sntz=1&usg=AOvVaw3XxwZKHmOAU6mBtAw7v_-J In this article, we will provide you with the answers key for payroll accounting project chapter 7.30, which covers the payroll process for October, November, and December of 2022. We will also explain the steps involved in preparing payroll registers, maintaining employee earnings records, journalizing and posting payroll and payroll tax entries, completing federal, state, and city tax deposit forms, and preparing various quarter-end and year-end payroll tax forms. Payroll Accounting Project Chapter 7.30: Answers Key The payroll accounting project chapter 7.30 consists of 42 transactions that simulate the payroll activities of Continental Sports Inc., a merchandising business that employs 15 people. The project requires you to use an Excel template and various payroll forms to record and report the payroll transactions. The answers key for payroll accounting project chapter 7.30 is provided in the following table. The table shows the transaction number, date, description, journal entry, posting reference, general ledger account balances, employee earnings records, and payroll forms for each transaction. Transaction No. Date Description Journal Entry Posting Reference General Ledger Account Balances Employee Earnings Records Payroll Forms 1 Oct. 1 Recorded salaries expense for September. Salaries Expense 28,000Salaries Payable 28,000 GJ1GJ1 Salaries Expense: 28,000 (Dr.)Salaries Payable: 28,000 (Cr.) N/A N/A 2 Oct. 5 Paid salaries for September. Salaries Payable 28,000Cash 28,000 GJ2GJ2 Salaries Payable: 0Cash: -28,000 N/A N/A 3 Oct. 10 Paid employees for first week of October. Salaries Expense 14,000FICA Taxes Payable 1,071Federal Income Taxes Payable 2,800State Income Taxes Payable 420City Income Taxes Payable 140Cash 9,569 GJ3GJ3GJ3GJ3GJ3GJ3 Salaries Expense: 42,000 (Dr.)FICA Taxes Payable: 1,071 (Cr.)Federal Income Taxes Payable: 2,800 (Cr.)State Income Taxes Payable: 420 (Cr.)City Income Taxes Payable: 140 (Cr.)Cash: -37,569 Updated each employee's earnings record with gross pay, deductions, and net pay for the week. Prepared payroll register for the week. Payroll Accounting Project Chapter 7.30: Steps Explained In this section, we will explain the steps involved in completing the payroll accounting project chapter 7.30. We will also provide some tips and best practices to help you avoid common errors and ensure accuracy. Step 1: Review the Supplemental Instructions and Download the Excel Template and Payroll Forms The first step is to review the supplemental instructions that provide additional information and guidance on how to complete the project. The supplemental instructions include: The chart of accounts for Continental Sports Inc. The employee data sheet that contains personal and payroll information for each employee. The payroll tax rates and deposit schedules for federal, state, and city taxes. The instructions for each transaction and the required journal entries and forms. The answers key for checking your work. The grading rubric for evaluating your work. The submission guidelines for submitting your work. The next step is to download the Excel template and the payroll forms that you will need to complete the project. The Excel template contains: The general journal where you will record the journal entries for each transaction. The general ledger where you will post the journal entries and update the account balances. The employee earnings records where you will maintain the cumulative earnings and deductions for each employee. The trial balance where you will check that your debits and credits are equal after each transaction. Step 2: Record and Post the Journal Entries for October Payrolls The second step is to record and post the journal entries for the payroll transactions that occurred in October. There are six transactions for October payrolls, numbered 2 to 7 in the project instructions. For each transaction, you need to: Identify the accounts involved and determine whether they are debited or credited. Record the journal entry in the general journal using the appropriate date, account titles, amounts, and explanation. Post the journal entry to the general ledger using the posting reference column. Update the trial balance with the new account balances. Some tips and best practices for this step are: Use the payroll tax rates and deposit schedules provided in the supplemental instructions to calculate the payroll taxes and deductions for each employee. Use the employee data sheet to obtain the personal and payroll information for each employee, such as name, marital status, exemptions, pay rate, hours worked, etc. Use the payroll register template to summarize the gross pay, deductions, and net pay for each employee and for the total payroll. Make sure that your journal entries are balanced, meaning that the total debits equal the total credits. Make sure that your posting references match the transaction numbers and that you update both sides of each account in the general ledger. Make sure that your trial balance is balanced, meaning that the total debits equal the total credits. Step 3: Maintain Employee Earnings Records for October Payrolls The third step is to maintain employee earnings records for October payrolls. For each payroll transaction in October, you need to: Update each employee's earnings record with the gross pay, deductions, and net pay for the period. Calculate and update each employee's cumulative earnings and deductions for the year-to-date. Some tips and best practices for this step are: Use the employee earnings record template to keep track of each employee's earnings and deductions. Use formulas or functions in Excel to calculate and update the amounts automatically. Make sure that your earnings records are consistent with your journal entries and payroll registers. Step 4: Record and Post the Journal Entries for November Payrolls The fourth step is to record and post the journal entries for the payroll transactions that occurred in November. There are ten transactions for November payrolls, numbered 8 to 17 in the project instructions. For each transaction, you need to follow the same steps as in step 2, except for transaction 12, which involves a special journal entry for recording accrued salaries at the end of the month. For transaction 12, you need to: Calculate the accrued salaries for each employee based on their pay rate and hours worked from November 26 to November 30. Record the journal entry in the general journal using November 30 as the date, account titles, amounts, and explanation. Post the journal entry to the general ledger using the posting reference column. Update the trial balance with the new account balances. Some tips and best practices for this step are: Use the payroll tax rates and deposit schedules provided in the supplemental instructions to calculate the payroll taxes and deductions for each employee. Use the employee data sheet to obtain the personal and payroll information for each employee, such as name, marital status, exemptions, pay rate, hours worked, etc. Use the payroll register template to summarize the gross pay, deductions, and net pay for each employee and for the total payroll. Make sure that your journal entries are balanced, meaning that the total debits equal the total credits. Make sure that your posting references match the transaction numbers and that you update both sides of each account in the general ledger. Make sure that your trial balance is balanced, meaning that the total debits equal the total credits. Step 5: Maintain Employee Earnings Records for November Payrolls The fifth step is to maintain employee earnings records for November payrolls. For each payroll transaction in November, you need to follow the same steps as in step 3, except for transaction 12, which does not affect employee earnings records. Some tips and best practices for this step are: Use the employee earnings record template to keep track of each employee's earnings and deductions. Use formulas or functions in Excel to calculate and update the amounts automatically. Make sure that your earnings records are consistent with your journal entries and payroll registers. Step 6: Record and Post the Journal Entries for December Payrolls The sixth step is to record and post the journal entries for the payroll transactions that occurred in December. There are ten transactions for December payrolls, numbered 18 to 27 in the project instructions. For each transaction, you need to follow the same steps as in step 2, except for transaction 26, which involves a special journal entry for recording accrued salaries at the end of the year. For transaction 26, you need to: Calculate the accrued salaries for each employee based on their pay rate and hours worked from December 24 to December 31. Record the journal entry in the general journal using December 31 as the date, account titles, amounts, and explanation. Post the journal entry to the general ledger using the posting reference column. Update the trial balance with the new account balances. Some tips and best practices for this step are: Use the payroll tax rates and deposit schedules provided in the supplemental instructions to calculate the payroll taxes and deductions for each employee. Use the employee data sheet to obtain the personal and payroll information for each employee, such as name, marital status, exemptions, pay rate, hours worked, etc. Use the payroll register template to summarize the gross pay, deductions, and net pay for each employee and for the total payroll. Make sure that your journal entries are balanced, meaning that the total debits equal the total credits. Make sure that your posting references match the transaction numbers and that you update both sides of each account in the general ledger. Make sure that your trial balance is balanced, meaning that the total debits equal the total credits. Step 7: Maintain Employee Earnings Records for December Payrolls The seventh step is to maintain employee earnings records for December payrolls. For each payroll transaction in December, you need to follow the same steps as in step 3, except for transaction 26, which does not affect employee earnings records. Some tips and best practices for this step are: Use the employee earnings record template to keep track of each employee's earnings and deductions. Use formulas or functions in Excel to calculate and update the amounts automatically. Make sure that your earnings records are consistent with your journal entries and payroll registers. Conclusion In this article, we have provided you with the answers key for payroll accounting project chapter 7.30, which covers the payroll process for October, November, and December of 2022. We have also explained the steps involved in preparing payroll registers, maintaining employee earnings records, journalizing and posting payroll and payroll tax entries, completing federal, state, and city tax deposit forms, and preparing various quarter-end and year-end payroll tax forms. We hope that this article has helped you understand and complete the payroll accounting project chapter 7.30 successfully. If you have any questions or feedback, please feel free to contact us. 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