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Record the journal entry to account for employer payroll taxes based on the tota

ID: 2521073 • Letter: R

Question

Record the journal entry to account for employer payroll taxes based on the totals in the payroll register and the FUTA and SUTA calculations. Book the entry on the date paychecks are distributed. Recall that Zachary Fox and Michael Sierra are married, while Calvin Bell and David Alexander are single. Current period taxable earnings for FICA taxes are as follows:

Zachary Fox: $0

Calvin Bell: $20,478.57

David Alexander: $198,450

Michael Sierra: $117,600

Chart of Accounts

Notes:

Enter the transaction date on the first line only (if multiple transactions are required, enter the date on the first line of each transaction). Enter all debits within the transaction prior to entering any credits.

Use the Chart of Accounts provided to obtain the proper account names when recording the journal entries.

To earn any credit for a given line within the journal entry, the account name must be correct. Partial credit will be given for a correct account name with an incorrect amount, while full credit will be given for a correct account name with a correct amount.

Do not include journal entry explanation when submitting your answer.

FUTA Tax - Zachary Fox $6.97 SUTA Tax - Zachary Fox $13.94 FUTA Tax - Calvin Bell $0 SUTA Tax - Calvin Bell $5.02 FUTA Tax -David Alexander $0 SUTA Tax -David Alexander $0 FUTA Tax - Michael Sierra $0 SUTA Tax - Michael Sierra $0

Explanation / Answer

Journal entry Dr Cr Payroll Tax expenses $15,933.80 FICA-Social security taxes payable (20478.57+118500+117600)*6.2% 15907.87 FICA-Medicare taxes payable (20478.57+198450+117600)*1.45% 4879.66 SUTA taxes payable (13.94+5.02) 18.96 FUTA taxes payable $6.97 (being payroll taxes expenses recorded) FICA-SS limit for 2016 taken which is $118500 If any doubt please comment

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