BMX Company has one employee FICA Social Security taxes are 6 2 of the first $132,900 paid to its employee, and FICA Medicare taxes are 1 45 of gross pay For BMX, its FUTA taxes are 0 6 and SUTA taxes are 5 4 of the first $7,000 paid to its employee Gross Pay through August 31 Gross Pay for September a $ 5,900 $ 1,400 b 2,400 2,500 c 128,000 9,400 Exercise 9 8 (Algo) Payroll related journal entries LO P2 Assuming situation ( a ), prepare the employers September 30 journal entry to record salary expense and its related payroll liabilities for this employee The employees federal income taxes withheld by the employer are $80 for this pay period The employee's federal income taxes withheld by the employer are $80 for this pay period Compute the taxes to be withheld from gross pay for this employee Note Round your answers to 2 decimal places The employee's federal income taxes withheld by the employer are $80 for this pay period Prepare the employer's September 30 journal entry to record salary expense and its related payroll liabilities for this employee Note Round your answers to 2 decimal places Journal entry worksheet Prepare the employer's September 30 journal entry to record accrued salary expense and its related payroll liabilities for this employee Note Enter debits before credits

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 02, 2024

BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $132,900 paid to its employee, and FICA Medicare taxes are 1.45%

BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $132,900 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee.

	Gross Pay through August 31	Gross Pay for September
a.	$ 5,900	$ 1,400
b.	2,400	2,500
c.	128,000	9,400

Exercise 9-8 (Algo) Payroll-related journal entries LO P2

Assuming situation (a), prepare the employers September 30 journal entry to record salary expense and its related payroll liabilities for this employee. The employees federal income taxes withheld by the employer are $80 for this pay period.

image text in transcribed

The employee's federal income taxes withheld by the employer are $80 for this pay period. Compute the taxes to be withheld from gross pay for this employee. Note: Round your answers to 2 decimal places. The employee's federal income taxes withheld by the employer are $80 for this pay period. Prepare the employer's September 30 journal entry to record salary expense and its related payroll liabilities for this employee. Note: Round your answers to 2 decimal places. Journal entry worksheet Prepare the employer's September 30 journal entry to record accrued salary expense and its related payroll liabilities for this employee. Note: Enter debits before credits