Required information Use the following information for the Exercises below. [The

Question

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.

Exercise 11-7 Payroll-related journal entries LO P3

Assuming situation a, 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.)

Gross Pay through August Gross Pay for September a. $ 6,400 $ 1,700 b. 20,100 4,000 c. 114,100 9,900

Explanation / Answer

   JOURNAL ENTRIES

  NOTE   MONTH   PARTICULARS AMOUNT

(a) 1 AUGUST DR PAYROLL TAX EXPENSE 131.52

CR FICA MEDICARE TAX @ 1.455 93.12

CR FUTA TAX @ 0.6% 38.4

[BIENG FICA & FUTA TAX ONLY APPLIED BECUASE AMOUNT IS ONLY $6400]

(b) 2 AUGUST DR PAYROLL TAX EXPENSE 994.95   

CR FICA MEDICARE @ 1.45% 291.45

  CR FUTA TAX @ 0.6% 120.6

CR SUTA TAX @ 2.9% 582.9

[BECUASE AMOUNT IS GREATHER THAN $7000 SUTA TAX IS CHARGED ]

(c) 3 AUGUST DR PAYROLL TAX EXPENSE 5647.65   

  CR FICA MEDICARE @ 1.45% 1654.45

  CR FUTA TAX @ 0.6% 684.6

CR SUTA TAX @ 2.9% 3308.9

(a) 4 SEPTEMBER DR PAYROLL TAX EXPENSE 34.93

CR FICA MEDICARE TAX @ 1.455 24.73

CR FUTA TAX @ 0.6% 10.2

(b) 5 SEPTEMBER DR PAYROLL TAX EXPENSE 82.22

CR FICA MEDICARE TAX @ 1.455 58.22

CR FUTA TAX @ 0.6% 24

(C) 6 SEPTEMBER DR PAYROLL TAX EXPENSE 490.05

CR FICA MEDICARE @ 1.45% 143.55

  CR FUTA TAX @ 0.6% 59.4

CR SUTA TAX @ 2.9% 287.1

  

  

NOTES;

  

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.