according to s summary of the payroll of Sinclair according to s summary of the
ID: 2588321 • Letter: A
Question
according to s summary of the payroll of Sinclair according to s summary of the payroll of Sinclair according to s summary of the payroll of Sinclair 3. Lamar Industries warrants Il sales. Sales for June were $190,000. In Jll s5o of labor. ournalize the adjusting entry required at June 30, the end of the ll the current year, to r, to record the estimated product warranty expense. try to record the warranty work provided in July. (b) Journalize the en A o at Erpenses 5700 iuen ding to a summary of the payroll of Sinclair Company $545,000 was subect to the 6,0% social securit) tax and the 1.5% Medicare tax. A (a) Caleulate the employer's payroll taxes using the following (b) Journalize the entry to record the accrual of the employer's payroll taxes. lso, soooowas subiect tostate and federal unemployment taxes. Federal unemployment. 0.8%. rates: State unemployment, 4.2%; 0 0 7Explanation / Answer
a.Calculate the employer's payroll taxes, using the following rates: state unemployment, 4.2% ; federal unemployment, 0.8%
social security tax and Medicare tax together make up FICA taxes.
FICA taxes = ($545000 x 6.0%) + ($545000 x 1.5%) = $32700 + $8175 = $40875
state unemployment tax = $10000 x 4.2% = $420
federal unemployment tax = $10000 x 0.8% = $80
Total payroll taxes = $40875 + $420 + $80 = $41375
b. journalize the entry to record the accrual of payroll taxes
Account Title
Debit
Credit
FICA expense
40875
Federal unemployment tax
80
State unemployment tax
420
FICA tax payable
40875
Federal unemployment tax payable
80
State unemployment tax payable
420
Account Title
Debit
Credit
FICA expense
40875
Federal unemployment tax
80
State unemployment tax
420
FICA tax payable
40875
Federal unemployment tax payable
80
State unemployment tax payable
420
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.