Example 6-5 The journal entry to record the payroll from Figure 6.1, on pages 6-
ID: 2527165 • Letter: E
Question
Example 6-5
The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be:
Example 6-7
The journal entry to record the payroll tax entry from Figure 6.1 on pages 6-2 and 6-3 would be (assume a SUTA tax rate of 3.0%):
Vulcra, Inc., has a semimonthly payroll of $67,460 on September 15, 20--. The total payroll is taxable under FICA Taxes-HI; $63,270 is taxable under FICA Taxes-OASDI; and $10,170 is taxable under FUTA and SUTA. The state contribution rate for the company is 4.1%. The amount withheld for federal income taxes is $9,978. The amount withheld for state income taxes is $1,352.
a. Journalize the payment of the wages, and record the payroll taxes on September 15.
If an amount box does not require an entry, leave it blank or enter "0". Round your answers to the nearest cent.
b. Assume that the employees of Vulcra, Inc., must also pay state contributions (disability insurance) of 1% on the taxable payroll of $62,120.00 and that the employees' contributions are to be deducted by the employer. Journalize the September 15 payment of wages, assuming that the state contributions of the employees are kept in a separate account.
If an amount box does not require an entry, leave it blank or enter "0". Round your answers to the nearest cent.
Debit Credit Wages Expense 24,762.70 FICA Taxes Payable—OASDI 1,535.29 FICA Taxes Payable—HI 359.06 FIT Payable 3,714.00 SIT Payable 55.25 Group Insurance Payments W/H 54.70 Cash 19,044.40Explanation / Answer
Workings:
a)
b)
Basis Amount Total Salaries 67,460.00 FICA Taxes-HI(1.45%) 67,460.00 978.17 FICA Taxes-OASDI(6.2%) 63,270.00 3,922.74 FUTA (0.6%) 10,170.00 61.02 SUTA(4.1%) 10,170.00 416.97 Federal Income Tax 9,978.00 State Income Tax 1,352.00 State disability Insurance 62,120.00 621.20Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.