Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information [The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Required information [The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $132,900 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Gross Pay through Gross Pay for August 31 September $ 6,200 $1,600 b. 2,200 2,300 128,300 9,700 a. C. Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September unde each of three separate situations (a), (b), and (c)(Round your answers to 2 decimal places.) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA Social Security FICA-Medicare FUTA SUTA b) Tax Sember Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security FICA-Medicare FUTA SUTA b) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security FICA-Medicare FUTA SUTA c) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security FICA-Medicare FUTA SUTA Assuming situation (a), prepare the employer's September 30 journal entry to record salary expense and its related payr liabilities for this employee. The employee's federal income taxes withheld by the employer are $80 for this pay period. Complete this question by entering your answers in the tabs below. Taxes to be General Withheld From Gross Pay Journal The employee's federal income taxes withheld by the employer are $80 for this pay period. Compute the taxes to be withheld from gross pay for this employee. (Round your answers to 2 decimal places.) Taxes to be Withheld From Gross Pay (Employee-Pald Taxes) September Earnings Tax Rate Tax Amount Subject to Tax Federal income tax $ 80.00 hces General Journal > Taxes to be General Withheld From Journal Gross Pay The employee's federal income taxes withheld by the employer are $80 for this pay period. Prepare the employer's September 30 entry to record salary expense and its related payroll liabilities for this employee. (Round your answers to 2 decimal places.) View transaction list Journal entry worksheet 1 Prepare the employer's September 30 journal entry to record accrued salary expense and its related payroll liabilities for this employee. Note: Enter debits before credits General Journal Debit Credit Date Sep 30 Assuming situation (a), prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related liabilities. Complete this question by entering your answers in the tabs below. Payroll Taxes Expense General Journal Compute the payroll taxes expense. (Round your answers to 2 decimal places.) Tax Rate Tax Amount Employer Payroll taxes September earnings subject to tax ances General Journal > Payro TOME Journal entry worksheet Record the employer's September 30 payroll taxes expense and its related liabilities Note: Enter debits before credits Date General Journal Debit Credit Sep 30 Record entry Clear entry View general journal Expense Journal Prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related liabilities. (Roun answers to 2 decimal places.) View transaction list Book Journal entry worksheet Print References 1 Record the employer's September 30 payroll taxes expense and its related liabilities Note Enter debits before credits Debit Credit General Journal Date Sep 30

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions