Data for Beth Corbin are presented in BE11-7. Prepare the journal entries to rec
ID: 2500144 • Letter: D
Question
Data for Beth Corbin are presented in BE11-7. Prepare the journal entries to record (a) Beth's pay for the period and (b) the payment of Beth's wages. Use January 15 for the end of the pay period and the payment date. In January gross earnings in Lugo Company totaled $80,000. All earnings are subject to 7.65% FICA taxes, 5.4% state unemployment taxes, and 0.8% federal unemployment taxes. Prepare the entry to record January payroll tax expense. Swenson Company has the following payroll procedures. Supervisor approves overtime work. The human resources department prepares hiring authorization forms for new hires. A second payroll department employees verifies payroll calculations. The treasurer's department pays employees.Explanation / Answer
BE11-8: The Question is not mentioned completly
BE11-9:
Jan. 31 Payroll Tax Expense 11080
FICA Taxes Payable 6120
Federal Unemployment Taxes Payable 640
State Unemployment Taxes Payable 4320
FICA - $90,000 x 8% = $7,200
FUTA - $90,000 x 0.8% = $720
SUTA - $90,000 x 5.4% = $4,860
BE11-10:
(a) Supervisor approves overtime work = time keeping
BE11-11
Jan. 31 Vacation Benefits Expense 8,400
Vacation Benefits Payable 8,400
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