Ryan company paid salaries for the month amounting to $120,000. Of this amount, $30,000 was received by
Question:
Of the $120,000, $14,000 was paid to employees who had already reached the $7,000 maximum wages subject to unemployment taxes (rates: 5.4 percent state and 0.8 percent federal). Withholding taxes amounted to $36,000, and $1,450 was withheld from the $120,000 for investment in company stock per an agreement with certain employees.
Required:
Give entries to record (a) salary payment and the liabilities for the deductions, (b) employer payroll expenses, and (c) remittance of the taxes.
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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