Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I understand how to put the account titles in the right places but I don't understand how to come up with the debit and credits

I understand how to put the account titles in the right places but I don't understand how to come up with the debit and credits of the general journal. I also can't figure out how to calculate the amount of taxable earnings for unemployment, Social Security, and Medicare taxes.

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Calculation of Taxable Earnings and Employer Payroll Taxes and Preparation of Journal Entry 1. Calculate the amount of taxable earnings for unemployment, Social Security, and Medicare taxes. 2. Prepare the journal entry to record the employer's payroll taxes as of September 14, 20--. Round your answers to the nearest cent. If an amount box does not require an entry, leave it blank. Selected information from the payroll register of Joanie's Boutique for the week ended September 14, 20-, is as follows. Social Security tax is 5.2% on the rst $118,500 of earnings for each employee. Medicare tax is 1.45% of gross earnings. FUTA tax is 0.6% and SUTA tax is 5.4% on the first $7,000 of earnings. Taxable Earnings Cumulative Pay Before Current Current Unemployment Social Employee Name Earnings Gross Pay Compensation Security 3n the first $7,000 of earnings. Taxable Earnings Cumulative Pay Before Current Current Unemployment Social Employee Name Earnings Gross Pay Compensation Security Jordahl, Stephanie $6,560 $1,200 Keesling, Emily 6,250 1,090 Palmer, Stefan 55,030 2,360 Soltis, Robin 54,380 2,320 Stout, Hannah 28,920 2,010 Xia, Xu 108,450 11,150 1. Calculate the amount of taxable earnings for unemployment, Social Security, and Medicare taxes. Taxable unemployment earnings *' Taxable Social Security earnings Taxable Medicare earnings 2. Prepare the journal entry to record the employer's payroll taxes as of September 14, 20--. Round your answers to the nearest cent. If an amount box does not require an entry, leave it blank. Page: DATE ACCOUNT TITLE DIES FEE? DEBIT CREDIT 1 20" Sept. 14 Payroll taxes expense 1 x C] 1 2 Social Security tax payable 1 C] x 2 3 Medicare tax payable 1 C] X 3 4 FUTA tax payable 1 C] X 4 5 SUTA tax payable 1 C] X 5 5 5 Feedback V

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

Accounting Multicolumn Journal

Authors: Claudia Gilbertson

11th Edition

1337565423, 9781337565424

More Books

Students also viewed these Accounting questions

Question

1. Information that is currently accessible (recognition).

Answered: 1 week ago