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Ndidi pays its employees on the last day of each month. The payroll information listed below is for January 2021, the first month of Ndidi's
Ndidi pays its employees on the last day of each month. The payroll information listed below is for January 2021, the first month of Ndidi's fiscal year.
Salaries | $102,000 |
Federal income taxes to be withheld | 33,000 |
Federal unemployment tax rate (FUTA) | 0.80% |
State unemployment tax rate | 5.40% |
Social security tax rate | 6.20% |
Medicare tax rate | 1.45% |
The journal entry on January 31, 2021 to record monthly payroll taxes will:
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Increase equity by $14,127
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Not affect total assets
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Reduce equity by $61,197
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Increase liabilities by $7,803
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