Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Axel's Mexican Restaurant incurred salaries expense of $68,000 for 2018. The payroll expense includes employer FICA tax, in addition to stato inerploymenit tax and federal

image text in transcribed
image text in transcribed
image text in transcribed
Axel's Mexican Restaurant incurred salaries expense of $68,000 for 2018. The payroll expense includes employer FICA tax, in addition to stato inerploymenit tax and federal unemployment tax of the total salaries, $24,000 is subject to unemployment tax. Also, the company provides the following benafits for employees health insurance (cost to the company, $2,500), life insurance (cost to the company, $400), and retirement benefits (cost to the company, 6% of salaries expense) Click the icon to view payroll tax rate information) Read the requirements Requirement 1. Journalize Axel's expenses for employee benefits and for payroll taxes. Explanations are not required. Begin with tho entry to accrue Axei's employer payroll taxes. (Round all amounts to the nearest cent. Record debits first, then credits. Exclude explanations from journal entries) Date Debit Credit Accounts Payroll Tax Expense FICA-OASDI Taxos Payable FICA-Medicare Taxes Payable Federal Uhamiamant Taxes Pawabin 400 6A00 Choose from any list or enter any number in the input fields and then click Chock Answer 2 parte Clear All Check Answer romaining i More Info wal For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. Employer: OASDI: 6.2% on first $118,500 earned per employee; Medicare: 1.45% on all earnings: FUTA: 0.6% on first $7,000 earned per employee; SUTA: 5.4% on first $7,000 earned per employee. ht Taxo ny ny Print Done ries expense of $68,000 for 2018. The payroll expense includes employe salaries, $24,000 is subject to unemployment tax. Also, the company provi 2), life insurance (cost to the company, $400), and retirement benefits (cost ate information.) i Requirements Payal 1. Journalize Axel's expenses for employee benefits and for payroll taxes. Explanations are not required. 2. What was Axel's total expense for 2018 related to payroll? xes Pas wyment Tent Taxe Print Done et ny number in the input fields and then click Check Answer Clear All FIS % &

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting International Financial Reporting Standards Global Edition

Authors: Charles T. Horngren, C. William Thomas, Wendy M. Tietz, Themin Suwardy, Walter T. Harrison

11th Edition

9781292211145

More Books

Students also viewed these Accounting questions

Question

How to find if any no. is divisble by 4 or not ?

Answered: 1 week ago

Question

Explain the Pascals Law ?

Answered: 1 week ago

Question

What are the objectives of performance appraisal ?

Answered: 1 week ago