Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Instructions Bailey Dry Cleaners has six employees who were paid the following wages during 2019: Frank Johnson $30,000 Bill Long 16,000 Duff Morse 130,000 Laura
Instructions Bailey Dry Cleaners has six employees who were paid the following wages during 2019: Frank Johnson $30,000 Bill Long 16,000 Duff Morse 130,000 Laura Stewart 30,000 27,000 Cindy Sharpe Melissa Ledbetter 22,000 Total $255,000 The state allows the company a 1% unemployment compensation merit-rating reduction from the normal rate of 5.49. The federalnaplomantata je 60Thomavimum unamnoumont. Mae Doc amplona ora 07.000 for Instructions 22,000 Melissa Ledbetter Total $255,000 The state allows the company a 1% unemployment compensation merit-rating reduction from the normal rate of 5.4%. The federal unemployment rate is 0.6%. The maximum unemployment wages per employee are $7,000 for both the state and the federal government Income tax withholdings of 20% are applied to all employees. A FI.C.A. tax rate of 8% on the employee and 8% on the employer is applied to the first $117,000 of each employee's wages. Required: 1. Calculate the amount of payroll taxes to be paid by Bailey 2. Prepare the journal entries to record the payment of payroli and the payroll tax expense
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669df8a1d33ab_833669df8a1794fd.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669df8a27a7da_834669df8a20eedc.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started