Starbucks Company’s payroll register contained the following information: Sales salaries expense……………………….$300,000 Federal income taxes payable……………… 60,000 Social...

Starbucks Company’s payroll register contained the following information:

Sales salaries expense……………………….$300,000

Federal income taxes payable……………… 60,000

Social Security taxes payable……………… 18,600 (employee portion)

Medicare tax payable……………………… 4,350 (employee portion)

Medical insurance payable………………… 40,000 (all paid by the employee)

Wages payable…………………………….. ??????

Futa rate = .6 % (.006)

Suta rate = 5.4 %

Note: Assume the amount of taxable salaries subject to Futa and Suta tax are $250,000.

Which of the following is part of the journal entry to accrue payroll for the employee-related expenses?

	a.	Credit sales salaries expense for $300,000
	b.	Credit wages payable for $177,050
	c.	Credit wages payable for $172,700
	d.	Debit federal income tax payable for $60,000

Which of the following is part of the journal entry to record the payroll taxes?

	a.	Credit Suta payable for $2,000
	b.	Debit wages payable for $172,700
	c.	Debit payroll tax expense for $37,950
	d.	Debit social security tax payable for $18,600

Expert Solution

ekkarill92 answered 1 year ago

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