Journalize payroll transactions Refer to QS 9-6. Prepare the journal entries to pay the March 31 payroll,
Question:
Journalize payroll transactions Refer to QS 9-6. Prepare the journal entries to pay the March 31 payroll, assuming Major Co. uses a special payroll bank account
QS 9-6:
Record employer payroll taxes Major Co. has five employees, each of whom earns \($2,500\) per month and has been employed since January 1. FICA Social Security taxes are 6.2% of the first \($94,200\) paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Federal income tax withholding is 15% of gross pay. State income tax withholding is 8% of the dollar amount withheld for federal income tax purposes. Prepare the March 31 journal entry to record the March wage expense and related liabilities.
Step by Step Answer:
College Accounting Ch 1-14
ISBN: 9781260904314
1st Edition
Authors: John Wild, Vernon Richardson, Ken Shaw