Mooney Labs had the following payroll for the week ended February 28: Assumed ta

Question

Mooney Labs had the following payroll for the week ended February 28:

Assumed tax rates are as follows:
a. FICA: Social Security (employer) 6.2 percent (0.062) and (employee) 4.2 percent (0.042) on the first $ 106,800 for each employee and Medicare, 1.45 percent (0.0145) on all earnings for each employee.
b. State unemployment tax, 5.4 percent (0.054) on the first $ 7,000 for each employee.
c. Federal unemployment tax, 0.6 percent (0.006) on the first $ 7,000 for each employee.

Required
Record the following entries in general journal form:
1. The payroll entry as of February 28.
2. The entry to record the employer’s payroll taxes as of February 28 assuming that the total payroll is subject to the FICA taxes (combined Social Security and Medicare) and that $ 5,490 is subject to unemployment taxes.
3. The payment to the employees on March 2. (Assume that the company has transferred cash to Cash— Payroll Bank Account for thispayroll.)

Explanation / Answer

Accounts Title Dr Cr ans a Technicians salaries exp 6955.00 Office salaries exp 2260.00 Federal Income tax payable 1145.00 Social Security Taxes payable 387.03 Medicare Taxes Payable 133.62 Chartiy withheld 165.00 Salaries Payable 7384.35 ans b Payroll Tax expenses 850.05 Social Security Taxes payable 387.03 Medicare Taxes Payable 133.62 State unemployment tax payable (5490*5.4%) 296.46 Federal Unemployment tax payable (5490*.6%) 32.94 ans c Salaries Payable 7384.35 Cash— Payroll Bank Account 7384.35 If any doubt please comemnt

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.