Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[The following information applies to the questions displayed below.) BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128.400 paid

image text in transcribed
image text in transcribed
image text in transcribed
[The following information applies to the questions displayed below.) BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128.400 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 $ 5,200 $2,400 2,350 2,450 122,800 8,700 a. b. Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three separate situations (a), (b), and ((Round your answers to 2 decimal places.) Tax Rate Tax Amount FICA-Social Security FICA Medicare FUTA September Earnings Subject to Tax $ 2,400.00 2.400.00 1.280.00 1,280.00 6.20% $ 1.45% 0.60% 5.40% 148.80 34.80 7.68 09.12 SUTA b) Tax Tax Rate Tax Amount 6.20% $ 158.10 FICA-Social Security FICA-Medicare FUTA SUTA September Earnings Subject to Tax 2,550,00 2,660.00 2,550.00 2,550,00 1.45% 0.60% 36.98 15.30 137.70 5.40% Required information Taxes to be General Withheld From Journal Gross Pay The employee's federal income taxes withheld by the employer are $90 for this pay period. Prepare the employer's September 30 Journal entries 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 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 Record entry Clear entry View general lournal [The following information applies to the questions displayed below) BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 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 $ 5,200 $2,400 2,350 2,450 122,800 8,700 Assuming situation (a), prepare the employer's September 30 journal entries to record salary expense and its related payroll liabilitie for this employee. The employee's federal income taxes withheld by the employer are $90 for this pay period. Complete this question by entering your answers in the tabs below. ces Taxes to be General Withheld From Journal Gross Pay The employee's federal income taxes withheld by the employer are $90 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 $ 90.00

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

Students also viewed these Accounting questions

Question

Create a workflow analysis.

Answered: 1 week ago