Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
3) A company has one employee. The employee earns $12,000 for the month of January. The federal income tax rate is 15%. FICA - social
3) A company has one employee. The employee earns $12,000 for the month of January. The federal income tax rate is 15%. FICA - social security tax rate is 6.2% and FICA - Medicare tax rate is 1.45%. The Federal and state unemployment tax rate is 0.8% and 4.0%, respectively on the first $7,000. The employee also wants the company to withhold $40 for the union dues, and $20 for Red Cross. Required: a) Prepare the company's journal entry to record the January payroll. b) Prepare the company's journal entry to record the January payroll tax expense. (25%)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/6690654a8f8a9_14566906549f2469.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started