Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

E13.6 (LO 1) (Payroll Tax Entries) The payroll of YellowCard Company for September 2020 is as follows. Total payroll was $480,000, of which $110,000 is

image text in transcribed
image text in transcribed
E13.6 (LO 1) (Payroll Tax Entries) The payroll of YellowCard Company for September 2020 is as follows. Total payroll was $480,000, of which $110,000 is exempt from Social Security tax because it repre- sented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 was $400,000. Income taxes in the amount of $80,000 were withheld, as was $9,000 in union dues. The state unemployment tax is 3.5%, but YellowCard Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employ. ee's wages to $128,400 and 1,45% in excess of $128.400. No employee for YellowCard makes more than $125,000. The federal unemployment tax rate is 0.8% after state credit. Instructions Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately

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

Internal Auditing Assurance And Consulting Services

Authors: Kurt F. Reding, Paul J. Sobel, Urton L. Anderson, Michael J. Head, Sridhar Ramamoorti, Mark Salamasick, Contributing Writer, Cris Ridd, Richard Tuschman

1st Edition

0894136100, 978-0894136108

More Books

Students also viewed these Accounting questions

Question

How is a futures contract priced?

Answered: 1 week ago

Question

5-8 What are the advantages and disadvantages of the BYOD movement?

Answered: 1 week ago