17. BMX Company has one employee, FICA Social Security taxes are 6.20% of the fi

Question

17. BMX Company has one employee, FICA Social Security taxes are 6.20% of the first $118,500 s employee, and FICA Medicare taxes are 1.45% of gross pay. Federal income tax is paid to it withheld at a 25 are 0.50% and SUTA taxes are 2.90% of the first $7,000 paid to its employee. .0% rate and state income tax is withheld at a 65% rate. For BMX, FUTA taxes Gross Pay through August Gross Pay for September $20,800 $103,000 a. (3 points) Prepare BMX Company's September 30 journal entry to record the employers payroll taxes expense and its related liabilities. (Round your answers to 2 decim places.) al (3 points) Prepare BMX Company's September 30 journal entry to record salary expense and its related payroll liabilities for this employee. (Round your answers places.) b. to 2 decimal

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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