Juan's Mexican Restaurant incurred salaries expense of

$63,000

for

2024.

The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries,

$16,000

is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company,

$2,000),

life insurance (cost to the company,

$400),

and retirement benefits (cost to the company,

8%

of salaries expense).

LOADING...

(Click the icon to view payroll tax rate information.)Read the requirements

LOADING...

.

Requirement 1. Journalize

Juan's

expenses for employee benefits and for payroll taxes. Explanations are not required.Begin with the entry to accrue

Juan's

employer payroll taxes. (Round all amounts to the nearest cent. Record debits first, then credits. Exclude explanations from journal entries.)

Date			Accounts	Debit	Credit

For all payroll calculations, use the following tax rates and round amounts to the nearest cent:

Employee:	OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000.
Employer:	OASDI: 6.2% on first $132,900 earned per employee; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned per employee; SUTA: 5.4% on first $7,000 earned per employee.

Dialog content ends

PrintDone