Question
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 |
Vulcra, Inc., has a semimonthly payroll of $67,920 on September 15, 20--. The total payroll is taxable under FICA Taxes-HI; $63,130 is taxable under FICA Taxes-OASDI; and $10,460 is taxable under FUTA and SUTA. The state contribution rate for the company is 4.1%. The amount withheld for federal income taxes is $9,917. The amount withheld for state income taxes is $1,337.
a. Journalize the payment of the wages, and record the payroll taxes on September 15.
If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
Account | Debit | Credit | |
Payment of wages | Wages Expense | fill in the blank af5b15fcb023033_2 | fill in the blank af5b15fcb023033_3 |
FICA Taxes Payable-OASDI | fill in the blank af5b15fcb023033_5 | fill in the blank af5b15fcb023033_6 | |
FICA Taxes Payable-HI | fill in the blank af5b15fcb023033_8 | fill in the blank af5b15fcb023033_9 | |
Employees FIT Payable | fill in the blank af5b15fcb023033_11 | fill in the blank af5b15fcb023033_12 | |
Employees SIT Payable | fill in the blank af5b15fcb023033_14 | fill in the blank af5b15fcb023033_15 | |
Cash | fill in the blank af5b15fcb023033_17 | fill in the blank af5b15fcb023033_18 | |
Payroll taxes | Payroll Taxes | fill in the blank af5b15fcb023033_20 | fill in the blank af5b15fcb023033_21 |
FICA Taxes Payable-OASDI | fill in the blank af5b15fcb023033_23 | fill in the blank af5b15fcb023033_24 | |
FICA Taxes Payable-HI | fill in the blank af5b15fcb023033_26 | fill in the blank af5b15fcb023033_27 | |
FUTA Taxes Payable | fill in the blank af5b15fcb023033_29 | fill in the blank af5b15fcb023033_30 | |
SUTA Taxes Payable | fill in the blank af5b15fcb023033_32 | fill in the blank af5b15fcb023033_33 |
b. Assume that the employees of Vulcra, Inc., must also pay state contributions (disability insurance) of 1% on the taxable payroll of $61,500.00 and that the employees' contributions are to be deducted by the employer. Journalize the September 15 payment of wages, assuming that the state contributions of the employees are kept in a separate account.
For a compound transaction, if an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
Date | Account | Debit | Credit |
Sept. 15 | Wages Expense | _________ | ___________ |
FICA Taxes Payable-OASDI | ________ | ___________ | |
FICA Taxes Payable-HI | _________ | ___________ | |
FICA Tax Expense | _________ | ___________ | |
Payroll Taxes | __________ | ___________ | |
SUTA Taxes Payable | __________ | ___________ | |
Cash | __________ | ___________ |
(not sure if I filled in the accounts correctly.. could you double check those and fill in the totals for the debit and credits)
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