Exercise 9-7 Payroll-related journal entries LO P3 BMX Company has one employee.

Question

Exercise 9-7 Payroll-related journal entries LO P3 BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $117,000 paid to its taxes are 2.9% of the first $7,000 paid to its employee. its FUTA taxes a Gross Pay through August Gross Pay for September $ 830 a. $ 6,640 Prepare the employer's September 30 journal entries to record the employer's payroll taxes expense and its related liabilities. (Round your answers to 2 decimal places.) Employee A: September earnings subject to tax Employer Payroll taxes Tax Rate Tax Amount

Explanation / Answer

Employer Payroll taxes September earnings subject to tax Tax Rate Tax Amount FICA-Social Security $830 6.20% $51.46 FICA-Medicare $830 1.45% $12.04 FUTA 360 0.60% $2.16 SUTA 360 2.90% $10.44 Total Payroll Taxes Expense 76.10 Date General Journal Debit Credit Sep. 30 Payroll taxes expense 76.10 FICA—Social security taxes payable $51.46 FICA—Medicare taxes payable $12.04 Federal unemployment taxes payable $2.16 State unemployment taxes payable $10.44

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