Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 8-3B Record payroll (LO8-3) Kashi Sales, L.L.C., produces healthy, whole-grain foods such as breakfast cereals, frozen dinners, and granola bars. Assume payroll for the

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Problem 8-3B Record payroll (LO8-3) Kashi Sales, L.L.C., produces healthy, whole-grain foods such as breakfast cereals, frozen dinners, and granola bars. Assume payroll for the month of January was $320,000 and the following withholdings, fringe benefits, and payroll taxes apply: Federal and state income tax withheld Health insurance premiums (Blue Cross) paid by employer Contribution to retirement plan (Fidelity) paid by employer FICA tax rate (Social Security and Medicare) Federal and state unemployment tax rate $117,000 11,200 42,000 7.65% 6.20% Assume that Kashi has paid none of the withholdings or payroll taxes by the end of January (record them as payables), and no employee's cumulative wages exceed the relevant wage bases. Required: 1. Record the employee salary expense, withholdings, and salaries payable. 2. Record the employer-provided fringe benefits. 3. Record the employer payroll taxes. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record the employee salary expense, withholdings, and salaries payable. Note: Enter debits before credits. Credit Date January 31 Debit 320,000 General Journal Salaries Expense Income Tax Payable FICA Tax Payable Salaries Expense 117,000 Record entry Clear entry View general journal View transaction list Journal entry worksheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Fundamentals Of IT Audit For Operational Auditors

Authors: Timothy McWilliams

1st Edition

1634541332, 978-1634541336

More Books

Students also viewed these Accounting questions