Question
Exercise 199 a-c Ada Marion earns a salary of $7,500 per month during the year. FICA taxes are 7.65% on the first $127,200 of gross
Exercise 199 a-c Ada Marion earns a salary of $7,500 per month during the year. FICA taxes are 7.65% on the first $127,200 of gross earnings. Federal unemployment insurance taxes are 6.2% of the first $7,000; however, a credit is allowed equal to the state unemployment insurance taxes of 5.4% on the $7,000. During the year, $25,600 was withheld for federal income taxes and $5,700 was withheld for state income taxes. Prepare a journal entry summarizing the payment of Ada's total salary during the year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Prepare a journal entry summarizing the employer payroll tax expense on Ada's salary for the year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Determine the cost of employing Ada for the year. Total cost of employment Click if you would like to Show Work for this question: Open Show Work
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