Exercise 11-6 Payroll-related journal entries LO P2 Assuming situation a, prepar
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Exercise 11-6 Payroll-related journal entries LO P2
Assuming situation a, prepare the employer’s September 30 journal entries to record salary expense and its related payroll liabilities for this employee. The employee’s federal income taxes withheld by the employer are $70 for this pay period. (Round your answers to 2 decimal places.)
Required information Use the following information for the Exercises below. The following information applies to the questions displayed below. BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $118,500 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 2.9% of the first $7,000 paid to its employee. ss Pay through August $5,300 19,000 113,000 Gross Pay for September $2,600 2,900 8,800 a. b.Explanation / Answer
Taxes to be withheld from gross pay September earnings Tax rate Tax amount Federal income taxes 70.00 FICA Social security 2600 6.20% 161.20 FICA medicare taxes 2600 1.45% 37.70 Total 268.90 Journal entry Sep-30 Salaries expense 258.4 FICA medicare taxes payable 161.20 FICA social security taxes payable 37.70 FUTA taxes payable 10.2 (1700*.6%) SUTA taxes payable 49.3 (1700*2.9%)
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