Example 6 5 The journal entry to record the payroll from Figure 6 1, on pages 6 2 and 6 3, would be Debit Credit Wages Expense 24,762 70 FICA Taxes PayableOASDI 1,535 29 FICA Taxes PayableHI 359 06 FIT Payable 3,714 00 SIT Payable 55 25 Group Insurance Payments W H 54 70 Cash 19,044 40 Example 6 7 The journal entry to record the payroll tax entry from Figure 6 1 on pages 6 2 and 6 3 would be (assume a SUTA tax rate of 3 0 ) Debit Credit Payroll Taxes 2,785 81 FICA Taxes PayableOASDI 1,535 29 FICA Taxes PayableHI 359 06 FUTA Taxes Payable 148 58 SUTA Taxes Payable 742 88 The employees of Pelter Company earn wages of $11,700 for the two weeks ending April 12 FIT taxes of $350 were withheld The entire amount of wages is subject to the FICA taxes, but only $9,700 is taxable under the federal and state unemployment compensation laws The state contribution rate of the employer is 2 9 All employees are subject to state unemployment contributions of 0 5 on the April 12 taxable wages of $9,700, and the employees' contributions are to be deducted by the employer

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

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 27, 2024

Example 6-5 The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be: Debit Credit Wages Expense 24,762.70 FICA

Example 6-5

The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be:

	Debit	Credit
Wages Expense	24,762.70
FICA Taxes PayableOASDI		1,535.29
FICA Taxes PayableHI		359.06
FIT Payable		3,714.00
SIT Payable		55.25
Group Insurance Payments W/H		54.70
Cash		19,044.40

Example 6-7

The journal entry to record the payroll tax entry from Figure 6.1 on pages 6-2 and 6-3 would be (assume a SUTA tax rate of 3.0%):

	Debit	Credit
Payroll Taxes	2,785.81
FICA Taxes PayableOASDI		1,535.29
FICA Taxes PayableHI		359.06
FUTA Taxes Payable		148.58
SUTA Taxes Payable		742.88

The employees of Pelter Company earn wages of $11,700 for the two weeks ending April 12. FIT taxes of $350 were withheld. The entire amount of wages is subject to the FICA taxes, but only $9,700 is taxable under the federal and state unemployment compensation laws. The state contribution rate of the employer is 2.9%. All employees are subject to state unemployment contributions of 0.5% on the April 12 taxable wages of $9,700, and the employees' contributions are to be deducted by the employer.