Question
E 1327: Payroll-related liabilities Appendix Lee Financial Services pays employees monthly. Payroll information is listed below for January 2013, the first month of Lees fiscal
E 1327: Payroll-related liabilities
Appendix
Lee Financial Services pays employees monthly. Payroll information is listed below for January 2013, the first month of Lees fiscal year. Assume that none of the employees exceeded any relevant wage base.
Sales $500,000
Federal Income Taxes to be withheld 100,000
Federal unemployment Tax Rate 0.60%
State unemployment tax rate (after FUTA deduction 5.40%
Social Security (FICA) tax rate 7.65%
Required:
Prepare the appropriate journal entries to record salaries and wages expense and payroll tax expense for the January 2013 pay period.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started