BMX Company has one employee. FICA Social Security taxes are 6,20% of the first
ID: 2571518 • Letter: B
Question
BMX Company has one employee. FICA Social Security taxes are 6,20% of the first $118,500 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. Federal income tax is withheld at a 25.0% rate and state income tax is withheld at a 6.5% rate. For BMX, FUTA taxes are 0.60% and SUTA taxes are 2.90% of the first $7,000 paid to its employee.Gross pay through August $103,000
Gross pay through September $20,800
A. Prepare BMX Company’s September 30 journal entry to record the employer’s payroll taxes expense and it’s related liabilities. (Round your answers to 2 decimal places).
B. Prepare BMX Company’s September 30 journal entry to record salary expense and it’s related payroll liabilities for its employee. (Round your answers to 2 decimal places). BMX Company has one employee. FICA Social Security taxes are 6,20% of the first $118,500 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. Federal income tax is withheld at a 25.0% rate and state income tax is withheld at a 6.5% rate. For BMX, FUTA taxes are 0.60% and SUTA taxes are 2.90% of the first $7,000 paid to its employee.
Gross pay through August $103,000
Gross pay through September $20,800
A. Prepare BMX Company’s September 30 journal entry to record the employer’s payroll taxes expense and it’s related liabilities. (Round your answers to 2 decimal places).
B. Prepare BMX Company’s September 30 journal entry to record salary expense and it’s related payroll liabilities for its employee. (Round your answers to 2 decimal places).
Gross pay through August $103,000
Gross pay through September $20,800
A. Prepare BMX Company’s September 30 journal entry to record the employer’s payroll taxes expense and it’s related liabilities. (Round your answers to 2 decimal places).
B. Prepare BMX Company’s September 30 journal entry to record salary expense and it’s related payroll liabilities for its employee. (Round your answers to 2 decimal places).
Explanation / Answer
Date Account Title Debit Credit Sep.30 Social Security Tax Expense 1,290 Medicare Tax Expense 302 FUTA Expense 125 SUTA Expense 603 Cash or Tax Payable 2,319 Date Account Title Debit Credit Sep.30 Salaries Expenses 20,800 FICA-Social Sec. taxes Payable 1,290 FICA-Mdicare taxes payable 302 Employee fed tax payable 5,200 Employee state tax payable 1,352 Accrued Payroll Payable 12,657
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