Question

Required Information The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128.400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Gross Pay through August 31 $ 5,400 2,450 123, eae Gross Pay for September $2.400 2.55e 8,98e ssuming situation a, prepare the employer's September 30 journal entries to record salary expense and its related payroll liabilities or this employee. The employee's federal income taxes withheld by the employer are $90 for this pay period. Complete this question by entering your answers in the tabs below. Employee Paid Taxes General Journal Assuming situation a, prepare the employer's September 30 journal entries to record salary expense and its related payroll liabilities for this employee. (Round your answers to 2 decimal places.) View transaction list Journal entry worksheet Prepare the employer's September 30 journal entry to record the accrued salary expense and its related payroll liabilities for this employee. Note: Enter debits before credits General Journal Debit Credit Date Sep 30

Answer 1

Answer:

Employee Paid Taxes :

Employee paid Taxes
	Gross Pay	Tax Rate	Tax Amount
Federal Income Tax			$90
FICA- Social security	$2400	6.2%	$148.80(= $2,400 × 6.2%)
FICA- Medicare	$2400	1.45%	$34.80(=$2,400 × 1.45%)
Total taxes withheld			$273.6

Preparation of the employer's September 30 Journal entries to record the accrued salary expense and it's related payroll liabilities for this employees

Date	General Journal	Debit	Credit
Sep 30	Salaries Expenses A/c Dr.	$2400
	To FICA - Social security Taxes payable A/c		$148.80
	To FICA - Medicare Taxes payable A/c		$34.80
	To Employees Federal Income Taxes payable A/c		$90
	To Salaries payable A/c		$2126.40
	(For details of FICa taxes see notes)

Notes :

	Gross Pay	Tax Rate	Tax Amount( Gross pay × Tax rate)	Details
FICA - Social security	$2400	6.2%	$148.80	Full amount is taxable
FICA - Medicare	$2400	1.45%	$34.80	Full amount is taxable