Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Urban Fit Corporation paid salaries and wages of $172,560 to its employees for the month. Of this amount, $4,560 was paid to employees who had
Urban Fit Corporation paid salaries and wages of $172,560 to its employees for the month. Of this amount, $4,560 was paid to employees who had already exceeded wages of $154,080. Also, $52,560 was paid to employees who had already been paid the SUTA maximum. FICA employee withholdings consist of a social security tax of 6.20% on the first $154,080 earned, plus a Medicare tax of 1.45% on all wages. Urban Fit pays employer taxes as follows: its required FICA contribution, plus a FUTA tax of 6.0% on wages up to the SUTA maximum. Of this amount, 5.4% is payable to the state and 0.6% is payable to the U.S. Treasury. Employee income tax withholding was $42,000. Deductions included: union dues (in conformity with the union agreement), $3,600, and insurance premiums, $14,400. Required Provide the entries to: a. Record liabilities for payroll deductions. b. Record payroll tax expenses. c. Record remittance of payroll obligations, including salaries payable to employees. Note: Round your answers to the nearest whole dollar. Note: List multiple debits or credits (when applicable) in alphabetical order. Account Name Dr. a. Salaries Expense 172560 FICA Taxes Payable Cr. b. c. Cash FICA Taxes Payable FUTA Taxes Payable Health Care Savings Account Payable Insurance Premium Payable Payroll Tax Expense Retirement Contributions Payable Salaries Payable SUTA Taxes Payable Union Dues Payable Withholding Taxes Payable Salaries Expense To record payment to employees
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started