Kovarik Company had the following payroll for the week ended March 21: Assumed tax rates are as

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Kovarik Company had the following payroll for the week ended March 21:

Kovarik Company had the following payroll for the week ended

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 March 21.
2. The entry to record the employer€™s payroll taxes as of March 21 assuming that the total payroll is subject to the FICA taxes (combined Social Security and Medicare) and that $ 4,965 is subject to unemployment taxes.
3. The payment of the employees on March 23. (Assume that the company has transferred cash to Cash€” Payroll Bank Account for thispayroll.)

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College Accounting

ISBN: 978-1111528126

11th edition

Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille

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