The following information applies to the questions displayed below BMX Company h
ID: 2577624 • Letter: T
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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 ore 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 2g% of the first $7,000 paid to its employee. Gross Pay through August Gross Pay for 5,380 19,880 113,880 $2,680 2.980 8,880 b. Assuming situstion a, prepsre the employer's September 30 joumal entries to record salary expense and its relsted psyroll liabilities for this employee. The employee's federal income taxes withheld by the employer are $70 for this pay period. (Round your answers to 2 decimal places.) Taxes to be Withheld From Gro88 Pay ( Taxes) Tax Rate Tax Amount t to Tax Federal income tax 70 37 161 2,600 2.,600 Total taxes new trancaotion llct Journal entry worksheet Prepare the employer's September 30 journal entry to record the accrued salary expense and its related payroll liabilities for this employee Note: Enter debits before credits Debit Sep 30 2,600 ICA Social sec. taxes payable taxes payable mplayee fed. inc. taxes payableExplanation / Answer
Date General Journal Debit Credit Sep. 30 Salaries expense 2600.0 FICA-Social sec. taxes payable 161.20 FICA-Medicare taxes payable 37.70 Employee fed. inc. taxes payable 70.00 Salaries payable 2331.10 (To record accrued salary expense) Sep. 30 Payroll taxes expense 258.40 FICA-Social sec. taxes payable 161.20 FICA-Medicare taxes payable 37.70 FUTA taxes payable [($7000 - $5300) x 0.6%] 10.20 SUTA taxes payable [($7000 - $5300) x 2.9%] 49.30 (To record employer's payroll tax liabilities)
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