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Please show work in excel. Instructions Prepare the adjusting entry that should be recorded to fairly present the June 30 financial statements. E13-8 (Payroll Tax
Please show work in excel.
Instructions Prepare the adjusting entry that should be recorded to fairly present the June 30 financial statements. E13-8 (Payroll Tax Entries) The payroll of Yellow Card Company for September 2013 is as follows. Total payroll was $480,000, of which $110,000 is exempt from Social Security tax because it represented amounts paid in excess of $113,700 to certain employees. The amount paid to employees in excess of $7,000 was $400,000. Income taxes in the amount of $80,000 were withheld, as was $9,000 in union dues. The state unemployment tax is 3.5%, but Yellow Card Company is allowed a credit of 2.3% by the state for its unem- ployment experience. Also, assume that the current FICA tax is 7.65% on an employee's wages to $113,700 and 1.45% in excess of $113,700. No employee for Yellow Card makes more than $125,000. The federal unemployment tax rate is 0.8% after state credit. Instructions Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separatelyStep by Step Solution
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