Question
2. (15 minutes) [LO1] Jamir Companys payroll information for the month of April is as follows: Management Salaries $5,000 Sales Salaries 3,000 Factory Wages 10,000
2. (15 minutes) [LO1] Jamir Companys payroll information for the month of April is as follows: Management Salaries $5,000
Sales Salaries 3,000
Factory Wages 10,000
FICA Taxes Withheld 1,375
Federal Income Taxes Withheld 2,800
Medical Ins. Premiums Withheld 820
Charitable Contributions Withheld 560
On April 30, the company issued check no. 250 payable to the Payroll Bank checking account to pay for the April payroll liability. Jamir Co, then issued payroll checks to employees after depositing the check.
3. (15 minutes) [LO1] Refer to the problem information above for Jamir Company. The Jamir Company is subject to federal and state unemployment rates of 0.8% and 5.0% respectively, on the first $7,000 paid to each employee. For the month of April, the wages and salaries subject to those taxes were $12,000.
Prepare the journal entry to record the employers payroll taxes.
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