Required information [The following information applies to the questions display

Question

Required information [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 a. b. C. Gross Pay through August $ 5,300 Gross Pay for September $2,600 2,900 8,800 19,000 113,000 Assuming situation a, prepare the employer's September 30 journal entries to record salary expense and its related payroll 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 Gross Pay (Employee-Paid Taxes) September Earnings Subject to Tax Tax Rate Tax Amount Federal income tax 70.00

Explanation / Answer

DATE GENERAL JOURNAL DEBIT CREDIT NARRATION 30-Sep Salary expense 13500.00 Salary expense for September 30-Sep Payroll Liabilitites-Mr.X 13027.05 Gross amount payable to employee 30-Sep FICA Medicare Taxes 195.75 Being the amount of FICA Medicare Taxes @ 1.45% ofgross pay of $ 13,500 for September 30-Sep FUTA tax 4.20 Being the amount of FUTA taxes @ 0.6% on first 7000 30-Sep SUTA Tax 203.00 Being the amount of SUTA taxes @ 2.9% on first 7000 30-Sep Federal Income Tax 70.00 Federal tax withheld

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