Question
Calculation of Taxable Earnings and Employer Payroll Taxes and Preparation of Journal Entry Selected information from the payroll register of Joanie's Boutique for the week
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Calculation of Taxable Earnings and Employer Payroll Taxes and Preparation of Journal Entry
Selected information from the payroll register of Joanie's Boutique for the week ended September 14, 20--, is as follows: Social Security tax is 6.2% on the first $128,400 of earnings for each employee. Medicare tax is 1.45% of gross earnings. FUTA tax is 0.6% and SUTA tax is 5.4% on the first $7,000 of earnings.
Taxable Earnings Employee Name Cumulative Pay Before Current Earnings Current Gross Pay Unemployment Compensation Social Security Jordahl, Stephanie $6,540 $1,210 Keesling, Emily 6,230 1,080 Palmer, Stefan 55,280 2,360 Soltis, Robin 54,110 2,310 Stout, Hannah 29,300 2,050 Xia, Xu 127,310 3,600
1. Calculate the amount of taxable earnings for unemployment, Social Security, and Medicare taxes.
Taxable Earnings Employee Name Current Earnings Unemployment Compensation Social Security Jordahl, Stephanie $ $ $ Keesling, Emily Palmer, Stefan Soltis, Robin Stout, Hannah Xia, Xu Total $ $ $
Social Security tax $ Medicare tax FUTA tax SUTA tax Total employer payroll taxes $
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2. Prepare the journal entry to record the employer's payroll taxes as of September 14, 20--.
Page: DATE ACCOUNT TITLE DOC. NO. POST. REF. DEBIT CREDIT 1 20-- Sept. 14 - Cash
- FUTA Tax Payable
- Payroll Taxes Expense
- Social Security Tax Payable
- SUTA Tax Payable
1 2 - Cash
- FUTA Tax Expense
- Medicare Tax Expense
- Social Security Tax Payable
- SUTA Tax Expense
2 3 - Cash
- FUTA Tax Expense
- Medicare Tax Payable
- Payroll Taxes Expense
- Social Security Tax Expense
3 4 - Cash
- FUTA Tax Payable
- Medicare Tax Expense
- Payroll Taxes Expense
- SUTA Tax Expense
4 5 - Cash
- FUTA Tax Expense
- Payroll Taxes Expense
- Social Security Tax Expense
- SUTA Tax Payable
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Calculation of Taxable Earnings and Employer Payroll Taxes and Preparation of Journal Entry
Selected information from the payroll register of Joanie's Boutique for the week ended September 14, 20--, is as follows: Social Security tax is 6.2% on the first $128,400 of earnings for each employee. Medicare tax is 1.45% of gross earnings. FUTA tax is 0.6% and SUTA tax is 5.4% on the first $7,000 of earnings.
Taxable Earnings | |||||
Employee Name | Cumulative Pay Before Current Earnings | Current Gross Pay | Unemployment Compensation | Social Security | |
Jordahl, Stephanie | $6,540 | $1,210 | |||
Keesling, Emily | 6,230 | 1,080 | |||
Palmer, Stefan | 55,280 | 2,360 | |||
Soltis, Robin | 54,110 | 2,310 | |||
Stout, Hannah | 29,300 | 2,050 | |||
Xia, Xu | 127,310 | 3,600 |
1. Calculate the amount of taxable earnings for unemployment, Social Security, and Medicare taxes.
Taxable Earnings | |||
Employee Name | Current Earnings | Unemployment Compensation | Social Security |
Jordahl, Stephanie | $ | $ | $ |
Keesling, Emily | |||
Palmer, Stefan | |||
Soltis, Robin | |||
Stout, Hannah | |||
Xia, Xu | |||
Total | $ | $ | $ |
Social Security tax | $ |
Medicare tax | |
FUTA tax | |
SUTA tax | |
Total employer payroll taxes | $ |
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2. Prepare the journal entry to record the employer's payroll taxes as of September 14, 20--.
DATE | ACCOUNT TITLE | DOC. NO. | POST. REF. | DEBIT | CREDIT | ||
---|---|---|---|---|---|---|---|
1 | 20-- Sept. 14 |
| 1 | ||||
2 |
| 2 | |||||
3 |
| 3 | |||||
4 |
| 4 | |||||
5 |
| 5 |
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