On January 8, the end of the first weekly pay period of the year, Royal Companys payroll
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1. Calculate FICA Social Security taxes payable and FICA Medicare taxes payable. Prepare the journal entry to record Royal Company’s January 8 (employee) payroll expenses and liabilities.
2. Prepare the journal entry to record Royal’s (employer) payroll taxes resulting from the January 8 payroll. Royal’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 0.8%.
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Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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