Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 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 $128,400 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. $ 5,500 $ 2,300
b. 2,500 2,600
c. 123,100 9,000

Assuming situation a, prepare the employers September 30 journal entries to record the employers payroll taxes expense and its related liabilities.

Employer Payroll taxes September earnings subject to tax Tax Rate Tax Amount
FICASocial Security
FICAMedicare
FUTA
SUTA
$0.00

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_2

Step: 3

blur-text-image_3

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

Auditing The Art and Science of Assurance Engagements

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser

12th Canadian edition

133098230, 978-0132791564, 132791560, 978-0133098235

More Books

Students also viewed these Accounting questions

Question

Does the research have to be based in an organisation?

Answered: 1 week ago

Question

Are implementable recommendations a requirement for the project?

Answered: 1 week ago