Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Urban Rit Corporation paid salaries and wages of $402,640 to its employees for the month. Of this amount, $10,640 was paid to employees who
Urban Rit Corporation paid salaries and wages of $402,640 to its employees for the month. Of this amount, $10,640 was paid to employees who had already exceeded cumulative wages of $142,000. Also, $122,640 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 $142,800 earned, plus a Medicare tax of 1.45% on all ages. 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 US. Treasury. Employee income tax withholding was $98,000. Deductions included: union dues on conformity with the union agreement) of $8,400, and Insurance premiums of $33.600 Required a. Prepare the journal entry to record salaries expense and the abilities for payroll deductions b. Prepare the journal entry to record payroll tax expenses. c. Prepare the journal entries to record remittance of the payroll obligations. Hine Record a separate entry to record cash payment to employees. *Note: Round your answers to the nearest whole dollar. Account Mar Salaries Expense FUTA Taxes Payable To records and deductors dr. 400640 0 Tods for taxes and with 0 Torc 34304x
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