Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Logan White is general manager of National Salons. During 2024, White worked for the company all year at a $14,200 monthly salary. He also eamed

image text in transcribedimage text in transcribed Logan White is general manager of National Salons. During 2024, White worked for the company all year at a $14,200 monthly salary. He also eamed a year-end bonus equal to 5% of his annual salary. White's federal income tax withheld during 2024 was $1,420 per month, plus $2,726 on his bonus check. State income tax withheld came to $90 per month, plus $80 on the bonus. FICA tax was withheld on the annual earnings. White authorized the following payroll deductions: Charity Fund contribution of 3% of total earnings and life insurance of $25 per month. National incurred payroll tax expense on White for FICA tax. The company also paid state unemployment tax and federal unemployment tax. (Click the icon to view payroll tax rate information.) Read the requirements. State Unemployment Taxes Payable 378 Requirement 5. Make the journal entry for the payment of the payroll withholdings and taxes. (Record debits first, then credits. Exclude explanations from joumal entries.) Date Accounts Employee Federal Income Taxes Payable Employee State Income Taxes Payable Debit Credit 19,766 1,160 FICA-Medicare Taxes Payable FICA-OASDI Taxes Payable Charity Fund Payable 5,368 Life Insurance Payable 300 Federal Unemployment Taxes Payable 42 State Unemployment Taxes Payable Cash 378 Help me solve this Demodocs example Get more help- Clear all Check answer of es P ble More info For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. OASDI: 6.2% on first $132,900 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. Print Done

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

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

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

Authors: Charles T. Horngren, Walter T. Harrison Jr., M. Suzanne Oliv

9th Edition

130898414, 9780132997379, 978-0130898418, 132997371, 978-0132569309

Students also viewed these Accounting questions