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During the month of March, Sunland Company’s employees earned wages of $68,000.

ID: 2570570 • Letter: D

Question

During the month of March, Sunland Company’s employees earned wages of $68,000. Withholdings related to these wages were $5,202 for Social Security (FICA), $7,969 for federal income tax, $3,294 for state income tax, and $425 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $744 for state unemployment tax.

Date

Account Titles and Explanation

Debit

Credit

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Date

Account Titles and Explanation

Debit

Credit

During the month of March, Sunland Company’s employees earned wages of $68,000. Withholdings related to these wages were $5,202 for Social Security (FICA), $7,969 for federal income tax, $3,294 for state income tax, and $425 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $744 for state unemployment tax.

Explanation / Answer

a Salaries and Wage Expense 68000 FICA Taxes Payable 5202 Federal Income Taxes Payable 7969 State Income Taxes Payable 3294 Union Dues Payable 425 Salaries and Wages Payable 51110 b Payroll Tax Expense 5946 FICA Taxes Payable 5202 State Unemployment Taxes Payable 744