Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be: Debit Credit Wages Expense 24,762.70 FICA Taxes PayableOASDI

The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be:

Debit Credit
Wages Expense 24,762.70
FICA Taxes PayableOASDI 1,535.29
FICA Taxes PayableHI 359.06
FIT Payable 3,714.00
SIT Payable 55.25
Group Insurance Payments W/H 54.70
Cash 19,044.40

Example 6-7

The journal entry to record the payroll tax entry from Figure 6.1 on pages 6-2 and 6-3 would be (assume a SUTA tax rate of 3.0%):

Debit Credit
Payroll Taxes 2,785.81
FICA Taxes PayableOASDI 1,535.29
FICA Taxes PayableHI 359.06
FUTA Taxes Payable 148.58
SUTA Taxes Payable 742.88

Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,500 each week.

Additional tax information includes:
FICA taxOASDI 6.2% on first $132,900
FICA taxHI 1.45% on total pay
Federal income tax $232.00 per pay
State income tax 22% of the federal income tax withholding
Federal unemployment tax 0.6% on first $7,000
State unemployment tax 0.05% on first $14,000
Additional payroll deductions include:
401(k) plan 3% per pay
Child support garnishment $100 per pay
Health insurance premium $95 per pay

Payment of Wages and Payroll Taxes

Record the payroll entry and payroll tax entry for the pay of the week ended June 7 (his year-to-date pay is $31,500).

If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.

image text in transcribed

Account Debit Credit Payment of wages Wages Expense FICA Taxes Payable-OASDI V FICA Taxes Payable-HIV Employees FIT Payable Employees SIT Payable Retirement Plan Contributions Payable Garnishment Payable Health Insurance Premiums Payable Cash Payroll taxes Payroll Taxes FICA Taxes Payable-OASDI FICA Taxes Payable-HIV

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

Accounting What The Numbers Mean

Authors: David Marshall, Wayne McManus, Daniel Viele

8th Edition

0073379417, 978-0073379418

More Books

Students also viewed these Accounting questions