In: Accounting
BMX Company has one employee. FICA Social Security taxes are
6.2% of the first $118,500 paid...
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 $7,000 paid to its employee.
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Gross Pay through August |
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Gross Pay for September |
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a. |
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$ |
6,200 |
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$ |
1,600 |
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b. |
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19,900 |
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3,800 |
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c. |
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113,900 |
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9,700 |
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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 $80 for this pay period.
(Round your answers to 2 decimal
places.)
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Taxes to be Withheld From Gross Pay (Employee-Paid Taxes) |
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September Earnings Subject to Tax |
Tax Rate |
Tax Amount |
Federal income tax |
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$80.00 |
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Prepare the employer's September 30 journal entry to record the
accrued salary expense and its related payroll liabilities for this
employee.
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Date |
General Journal |
Debit |
Credit |
Sep 30 |
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