Ex: 4 Santa Barbara Express has 4 sales employees, each of whom earns $5,000 per
ID: 2595771 • Letter: E
Question
Ex: 4 Santa Barbara Express has 4 sales employees, each of whom earns $5,000 per month and is paid on the last working day of the month. Each employee's wages are subject to FICA social security taxes of 6.2% and employe $110 for each employee. Medicare taxes of 1 .45% on all wages, withholding for each e also includes federal income tax of 16% and monthly medical insurance premiums of Prepare the general journal entry to accrue the monthly sales salaries expense at January 31 unemployment taxes of 0.6% of the first $7,000 paid each employee, and state unemployment employer's payroll taxes at January 31 for Santa Barbara Express. (Assume that none of the . a. b. The employer payroll taxes for Santa Barbara Express include FICA taxes, federal taxes of4.0% of the first $7,000 paid to each employee. Prepare the journal entry to record the employees has reached the unemployment limit of $7,000.)Explanation / Answer
Journal entries :
A) January 31 sales salaries expense (4*5,000) 20,000
FICA social security taxes payable(20,000*6.2%) 1,240
FICA Medicare taxes payable(20,000*1.45%) 290
Employee federal income taxes payable(20,000*16%) 3,200
Employee medical insurance payable(4*110) 440
Accrued payroll payable 14,830
B) January 31 payroll taxes expenses 2,450
FICA social security taxes payable(20,000*6.2%) 1240
FICA Medicare taxes payable(20,000*1.45%) 290
State unemployment taxes payable(20,000*4%) 800
Federal unemployment taxes payable(20,000*0.6%) 120
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