Spirit Corporation reported the following payroll-related costs for the month of February. Gross pay (wages expense)...

Spirit Corporation reported the following payroll-related costs for the month of February.


Gross pay (wages expense)	$	268,000
Social Security and Medicare taxes		20,502
Federal and state unemployment taxes		15,500
Workers’ compensation insurance		8,300
Group health and life insurance benefits		9,000
Employee pension plan benefits		27,850
Total payroll costs for February	$	349,152

Spirit’s insurance premiums for workers’ compensation and group health and life insurance were paid for in a prior period and recorded initially as prepaid insurance expense. Withholdings from employee wages in February were as follows.


State income tax withholdings	$	5,875
Federal income tax withholdings		56,000
Social Security and Medicare tax withholdings		20,502

a-c. Record Spirit’s payroll entries for the month of February.

d. Do the amounts withheld from Spirit’s employees represent taxes levied on Spirit Corporation?

Expert Solution

ekkarill92 answered 2 years ago

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