Question
According to a summary of the payroll of Mountain Streaming Co., $720,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax.
According to a summary of the payroll of Mountain Streaming Co., $720,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $60,000 was subject to state and federal unemployment taxes.
Required: | |
A. | Calculate the employers payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%. |
B. | Journalize the entry to record the accrual of payroll taxes. Refer to the Chart of Accounts for exact wording of account titles. |
Chart of Accounts
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Starting Question
a. Calculate the employers payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%.
Journal
b. On December 31, journalize the entry to record the accrual of payroll taxes. Refer to the Chart of Accounts for exact wording of account titles.
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JOURNAL
ACCOUNTING EQUATION
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