Question
Problem 11-3 Twin City Enterprises had the following information available for the payroll of May 31 st : Wages Earned $365,000 Federal Income Tax Withheld
Problem 11-3
Twin City Enterprises had the following information available for the payroll of May 31st:
Wages Earned $365,000
Federal Income Tax Withheld 54,750
State Income Tax Withheld 18,000
All wages are subject to Social Security and Medicare matching and withholding of 6.2% and 1.45%, respectively.
Federal Unemployment Tax of 0.70% and State Unemployment Tax of 1.50% is payable on $240,000 of the wages.
Calculate the following amounts.
- Social Security withholding
- Medicare withholding
- FUTA
- SUTA
- Total withholdings
- Net Wages
- Total cost to the company
Prepare the journal entry to record wages and withholdings.
Prepare the journal entry to record payroll taxes.
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Financial Accounting an introduction to concepts, methods and uses
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
13th Edition
978-0538776080, 324651147, 538776080, 9780324651140, 978-0324789003
