Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed

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

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 Information Systems

Authors: Marshall B. Romney, Paul J. Steinbart

13th edition

133428532, 978-0133428537

More Books

Students also viewed these Accounting questions

Question

Name the two types of international barriers. o-987

Answered: 1 week ago