US Savings Bonds

Posts Tagged ‘us savings bonds taxes’

Below is some information on US Savings Bonds including Series EE US Savings Bonds, Series I US Savings Bonds, Series HH and H US Savings Bonds.

Question: Payroll entry question in accounting?

I am really lost. The queston is: Assuming that the payroll for the last week of the year is to be paid on Jan 4 of the following fiscal year, journalize the following entries:
Dec. 30 to record payroll
Jan 4 to record the employers payroll taxes on the payroll to be paid Jan 4.
Sales Salaries 320,000
Warehouse Salaries 84,500
Office Salaries 155,500
Deductions:
Income Tax withheld 109,760
SS Tax withheld 28,560
Medicare Tax withheld 8400
US Savings bond 16,400
Group Insurance 24,690

Tax rates assumed: SS 6% on the first 100,000
Medicare 1.5%
State unemployment 3.8%
Federal unemployment 0.8%

Here is what I have for A.
30-DecSales Salaries Expense320000
Warehouse Salaries Expense84500
Office Salaries Expense155500
Social Security Tax Payable28560
Medicare Tax Payable 8400
Employees Tax Payable109760
Bond Deductions Payable16400
Group Insurance Payable24690
Salaries Payable 372190

Answer: The correct journal entries are as follows:
30-Dec:
Sales Salaries Expense (Debit) 320000
Warehouse Salaries Expense (Debit) 84500
Office Salaries Expense (Debit) 155500
State Unemployment Tax Expense (Debit) 21280
Federal Unemployment Tax Expense (Debit) 4480
Social Security Tax Payable (Credit) 67200
Medicare Tax Payable (Credit) 16800
Employees’ Income Tax(es) Payable (Credit) 109760
State Unemployment Tax Payable (Credit) 21280
Federal Unemployment Tax Payable (Credit) 4480
Bond Deductions Payable (Credit) 16400
Group Insurance Payable (Credit) 24690
Salaries Payable (Credit) 372190

Jan 4:
Social Security Tax Payable (Debit) 67200
Medicare Tax Payable (Debit) 16800
Employees’ Income Tax(es) Payable (Debit) 109760
State Unemployment Tax Payable (Debit) 21280
Federal Unemployment Tax Payable (Debit) 4480
Bond Deductions Payable (Debit) 16400
Group Insurance Payable (Debit) 24690
Salaries Payable (Debit) 372190
Cash (Credit) 632800

I hope I got all this right as I am not currently using this my AA degree for employment purposes.

WWII Propaganda Film: Our Enemy — the Japanese (Part 2 of 2)

Question: Hey, I have a question about taxes on Savings Bonds and Stocks.?

I recently cashed out some Stocks and Savings Bonds and was wondering how much I had to save for taxes. I cashed out $6,750 in Savings Bonds and $4,500 Stocks. I’m gonna file single and no taxes have been paid on any of the stocks or bonds and this is for 2007. Is it still 10% up to $7825 then 15% on the rest? If that is my only income in 2007 am I right that I’ll owe roughly $1,300 for 2007? Doesn’t have to be exact just making sure I save what I’ll need to pay for taxes so I won’t be in debt. This is the 1st time I’ve messed with stocks and bonds (Oh yeah, They were EE bonds) and not sure about taxes on them. Thanx

Answer: you only pay taxes on the interest earned on the Savings Bonds as well as any gains from the stocks….if any losses occured upon your sale of stock you can write them off against any gains

you are gonna need to research yourself what each stock was bought at originally or talk with someone at the brokerage house who processed the sale to find out your cost basis

when you cashed in the Savings Bonds you should have received an interest receipt for amount that is taxable to you

anyways at the end of the year you should receive tax statements but yeah if you have no other income about 10-15% is the tax due

so if the stock was bought for at 30 a share and sold at 35 a share you only owe 5 per share

What to Do with a Tax Refund