Ricardos Mexican Restaurant incurred salaries expense of $62,000 for 2024. The payroll expense includes employer FICA tax,
Question:
Ricardo’s Mexican Restaurant incurred salaries expense of $62,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $22,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $3,000), life insurance (cost to the company, $330), and retirement benefits (cost to the company, 10% of salaries expense).
Requirements
1. Journalize Ricardo’s expenses for employee benefits and for payroll taxes.
Explanations are not required.
2. What was Ricardo’s total expense for 2024 related to payroll?
Step by Step Answer:
To answer this question lets first understand that payroll expenses are not simply the wages or salaries paid to employees They also include various t...View the full answer
Horngrens Financial And Managerial Accounting The Managerial Chapters
ISBN: 9781292412337
7th Global Edition
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura
