Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hi there I need help solving this!!! 1. AP Company offers its employees the option of contributing retirement funds up to 5 percent of their
Hi there I need help solving this!!! 1. AP Company offers its employees the option of contributing retirement funds up to 5 percent of their wages, with the contribution being matched by AP. The company also pays 80 percent of medical and life insurance premiums. Company records indicate separate accounts for Social Security taxes and Medicare Taxes. Deductions and other payroll information are listed below! Wages $2,000,000 Employee contributions to voluntary retirement plans 84,000 Medical insurance premiums 42,000 9,000 Life insurance premiums 400,000 Federal income taxes to be withheld 53,000 State income taxes to be withheld Federal unemployment tax rate 5.40% State unemployment tax rate 6.20% Social security tax rate 1.45% Medicare tax rate Required: Prepare journal entries to record: a. Wage expense. b. Payroll tax expense. Fringe benefits expense. 2011. fiscal year ends December 31 and its
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