1.2 Prepare the journal entry to record Regis Company’s January 8 (employee) pay
ID: 2580036 • Letter: 1
Question
1.2 Prepare the journal entry to record Regis Company’s January 8 (employee) payroll expenses and liabilities. (Round your answers to 2 decimal places.) Please show solutions.
2. Prepare the journal entry to record Regis’s (employer) payroll taxes resulting from the January 8 payroll. Regis’s merit rating reduces its state unemployment tax rate to 4% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.6%. (Round your answers to 2 decimal places.) Please show solutions.
On January 8, the end of the first weekly pay period of the year, Regis Company's payroll register showed that its employees earned $22,760 of office salaries and $65,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $12,860 of federal income taxes, $1,340 of medical insurance deductions, and $840 of union dues. No employee earned more than $7,000 in this first period Required: 11 Calculate below the amounts for each of these four taxes of Regis Company. Regis's merit rating reduces its state unemployment tax rate to 4% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.6%. Round your answers to 2 decimal places.) Regis Company's Tax FICA-Social Security FICA-Medicare FUTA SUTA January 8 Earnings Subject to Tax Tax Rate Tax Amount 88,600 88,600 88,600 88,600 6.20% 1.45% 0.60% 4.00% 5,493.20 1,284.70 531.60 3,544.00Explanation / Answer
1 Regis Company’s: Tax January 8 earnings subject to tax Tax Rate Tax Amount FICA-Social Security 88600 6.20% 5493.2 FICA-Medicare 88600 1.45% 1284.7 FUTA 88600 0.60% 531.6 SUTA 88600 4.00% 3544 1.2 Jan-08 Office salaries expense 22,760.00 Sales salaries expense 65,840.00 FICA—Social sec. taxes payable 5,493.20 FICA—Medicare taxes payable 1,284.70 Employee fed. inc. taxes payable 12,860.00 Employee medical insurance payable 1,340.00 Employee union dues payable 840 Salaries payable 66,782.10 2 Jan-08 Payroll taxes expense 10,853.50 FICA—Social sec. taxes payable 5,493.20 FICA—Medicare taxes payable 1,284.70 State unemployment taxes payable 3,544.00 Federal unemployment taxes payable 531.60
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