Question
a. Cal Ruther, an employer, is subject to FICA taxes but exempt from FUTA and SUTA taxes. During the last quarter of the year, his
a. Cal Ruther, an employer, is subject to FICA taxes but exempt from FUTA and SUTA taxes. During the last quarter of the year, his employees earned monthly wages of $8,500, all of which is taxable. The amount of federal income taxes withheld each month is $1,040. Journalize the payment of wages, and record the payroll tax on November 25.
For a compound transaction, if an amount box does not require an entry, leave it blank. When required, round your answers to the nearest cent.
| Account | Debit | Credit | |
|---|---|---|---|
| Nov. 25 | Wages | ||
| FICA Taxes Payable-OASDI | |||
| FICA Taxes Payable-HI | |||
| Employees FIT Payable | |||
| Cash | |||
| Nov. 25 | Payroll Taxes | ||
| FICA Taxes Payable-OASDI | |||
| FICA Taxes Payable-HI |
b. Prior to posting the November 25 payroll transaction, FICA Taxes Payable-OASDI, FICA Taxes Payable-HI, and Employees FIT Payable had zero balances. Ruther must pay the FICA taxes and income taxes withheld on the November 25 payroll. Journalize the electronic transfer of the payroll taxes on December 15.
If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Dec. 15 | |||
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