Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Ivanhoe Company has the following data for the weekly payroll ending January 31. Employee M L. Helton R. Kenseth D. Tavaras 8 8 9 T
Ivanhoe Company has the following data for the weekly payroll ending January 31. Employee M L. Helton R. Kenseth D. Tavaras 8 8 9 T 8 8 10 Hours W 10 8 100 8 T 8 8 8 F 10 8 9 S 3 3 0 Hourly Rate $12 12 15 Federal Income Tax Withholding Health Insurance $34 37 58 $10 25 25 Employees are paid 1 times the regular hourly rate for all hours worked in excess of 40 hours per week. FICA taxes are 7.65% (the 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of 1.45% on all salaries and wages). Ivanhoe Company is subject to 5.4% state unemployment taxes and 0.6% federal unemployment taxes on the first $7,000 of gross earnings. Prepare the journal entry to record Ivanhoe's payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 15.25.)
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