The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, w

Question

The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be:

Example 6-7

The journal entry to record the payroll tax entry from Figure 6.1 on pages 6-2 and 6-3 would be (assume a SUTA tax rate of 3.0%):

The employees of Carson Bakery Company earn total wages of $7,780 during January. The total amount is taxable under FICA, FUTA, and SUTA. The state contribution rate for the company is 4.3%. The amount withheld for federal income taxes is $998.

Journalize the payment of the monthly wages, and record the payroll taxes.

If an amount box does not require an entry, leave it blank or enter "0". Round your answers to the nearest cent.

Debit Credit Wages Expense 24,762.70 FICA Taxes Payable—OASDI 1,535.29 FICA Taxes Payable—HI 359.06 FIT Payable 3,714.00 SIT Payable 55.25 Group Insurance Payments W/H 54.70 Cash 19,044.40

Explanation / Answer

Account Debit Credit Payment of monthly wages Wages Expense $7,780.00                FICA Taxes Payable—OASDI ($7,780 x 6.2%) $482.36                FICA Taxes Payable—HI ($7,780 x 1.45%) $112.81                FIT Payable $998.00                SIT Payable ($7780 x 4.3%) $334.54                Cash $5,852.29 Payroll taxes Payroll Taxes $875.25           FICA Taxes Payable—OASDI $482.36           FICA Taxes Payable—HI $112.81           FUTA Taxes Payable ($7780 x .6%) $46.68           SUTA Taxes Payable ($7780 x 3%) $233.40

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