Dixon Sales has four sales employees that receive weekly paychecks. Each earns $14 per hour and each has worked 40 hours in the pay period. Each employee pays 12% of gross in federal income tax, 3% in state income tax, 6.0% of gross in social security tax, 1.5% of gross in Medicare tax, and 0.5% in state disability insurance. Required: Journalize the recognition of the pay period ending January 19 that will be paid to the employees January 26. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to two decimal places.

The journal would be as follows:

                                         DebitCredit

sales wages expenses$2,240.00  

Federal income tax payable  $268.80

State income tax payable                   $67.20

Social security tax payable                    $134.40

Medicare tax payable                       $33.60

State disability insurance payable   $11.20

Sales Wages payable                   $1,724.80

Explanation:

In order to make the journal entry of the recognition of the pay period ending January 19 that will be paid to the employees January 26 we would have to calculate the records as follows:

sales wages expenses=4 * $14 * 40 hours=$2,240.00  

Federal income tax payable= 2,240* 12%=$268.80

State income tax payable= 2,240 * 3%=$67.20

Social security tax payable= 2240 * 6%=$134.40

Medicare tax payable=2240 * 1.5%=$33.60

State disability insurance payable=2240 * 0.5%=$11.20

Sales Wages payable=$1,724.80

Therefore the journal would be as follows:

                                         DebitCredit

sales wages expenses$2,240.00  

Federal income tax payable  $268.80

State income tax payable                   $67.20

Social security tax payable                    $134.40

Medicare tax payable                       $33.60

State disability insurance payable   $11.20

Sales Wages payable                   $1,724.80

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a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.