Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On January 14, at the end of the second week of the year, the totals of Castle Company's payroil register showed that its store employees'
On January 14, at the end of the second week of the year, the totals of Castle Company's payroil register showed that its store employees' wages amounted to s33,482 and that its warehouse wages amounted to $13,560. Withhoidings consisted of federal income taxes, $5,110, employer's 50cialSecurity taxes at the rate of 6.2 percent, and employees' Social Security taxes ot a rate of 6.2 percent. Both the emplover's and employees' Social Security taxes are based on the first $118,500, and ne employe has reached the limit. Additional withholdings were Medicare taxes at the rate of 1.45 percent on all earnings and charitable contributions withheld, $845. Required: a. Caiculate the amount of Social Security and Medicare taxes to be withheld and prepare the general journal entry to record the payroll. If an amount box does not require an entry, leave it blank. If required, round your intermediate calculations and final answers to the hearest cent and use the rounded answers in subsequent b. Prepare the general joumal entry to record the emplover's payroll taxes, assuming that the federal unemployment tax is 0.6 percent of the first $7,000, that the state. unemployment tax is 5.4 percent of the same base, and that no employee has surpassed the $7,000 imit. If an amount box does not require an entry, leave it blank. If. required, round your intermediate calculations and final answers to the nearest cent and use the rounded answers in subsequent computations
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