Question

According to a summary of the payroll of Mountain Streaming Co., $643,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $21,000 was subject to state and federal unemployment taxes.

a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 4.2%; federal unemployment, 0.8%.
$fill in the blank 262f0002cffe034_1

b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank.

		fill in the blank 2e9f1dfd8051fb4_2	fill in the blank 2e9f1dfd8051fb4_3
		fill in the blank 2e9f1dfd8051fb4_5	fill in the blank 2e9f1dfd8051fb4_6
		fill in the blank 2e9f1dfd8051fb4_8	fill in the blank 2e9f1dfd8051fb4_9
		fill in the blank 2e9f1dfd8051fb4_11	fill in the blank 2e9f1dfd8051fb4_12
		fill in the blank 2e9f1dfd8051fb4_14	fill in the blank 2e9f1dfd8051fb4_15

Answer 1

Answer
Account Title	Debit	Credit
a
Social Security Tax	$              38,580	643000*6%
Medicare Tax	$                9,645	643000*1.5%
State Unemployment Tax	$                   882	21000*4.2%
Federal Unemployment Tax	$                   168	21000*0.8%
Employer's payroll taxes	$              49,275
b
Payroll Tax Expense	$              49,275
Social Security Tax Payable		$                 38,580
Medicare Tax Payable		$                   9,645
State Unemployment Tax Payable		$                      882
Federal Unemployment Tax Payable		$                      168
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