Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
I want an answer and explanation to question 6 Cantrell Company is required by law to collect and remit sales taxes to the state. On
I want an answer and explanation to question 6
Cantrell Company is required by law to collect and remit sales taxes to the state. On this year's Black Friday, Cantrell had a total of $60,000 in cash sales that were subject to an 8% sales tax. What is the journal entry to record the cash sales on this Black Friday? Debit Cash $60,000; credit Sales $60,000; and record the taxes when paid. Debit Cash $64,800; credit Sales $60,000; credit Sales Taxes Payable $4,800. Debit Accounts Receivable $60,000; credit Sales $55,200; credit Sales Taxes Payable $4,800. Debit Sales Taxes Expense $4,800; debit Cash $60,000; credit Sales $64,800. Question 6 GT Inc. hires Sophia for a monthly salary of $8,838. The following information is related to GT and its employees. - The FICA tax rate for social security is 6.2% and the FICA tax rate for Medicare is 1.45% of all GT's employee earnings each calendar year. - The FUTA tax rate of 0.6% and the SUTA tax rate of 5.4% are applied to the first $7,000 of an employee's pay. - The federal income tax rate for employees with a monthly salary below $10,000 is about 16%. Thus, the amount withheld from Sophia's earnings was $1,414.08 each month. What is Sophia's Net Pay each month after GT Inc. withholds all the related tax liabilities for her? (Round your intermediate calculations to two decimal places.) $6,217.53$6,327.81Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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