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 0.5% and SUTA taxes are 5.4% of the first $7000 paid to its employee. Cross Pay through August 31 $ 5,000 2,250 122,600 Gross Pay for September $ 2, 100 2,350 0.500 Assuming situation (a), prepare the employer's September 30 journal entries to record the employers payroll taxes expense and its related liabilities. Complete this question by entering your answers in the tabs below. Payroll Taxes Expense General Journal Prepare the employer's September 30 journal entries to record the employer's payroll taxes expense and its related liabilities (Round your answers to 2 decimal places.) View transaction list View Journal entry worksheet Debit General Journal FICA-Social security taxes payable FICA-Medicare taxes payable Credit 130 20 Sep 30 30.45 80.00 Payroll Taxes Expense

Answer 1

Answer:

Taxes to be withheld from gross Pay (Employee – Paid Taxes)
	September earnings subject to tax	Tax rate	Tax Amount
FICA – Social Security tax	$2100	6.20%	$130.20
FICA – Medicare tax	$2100	1.45%	$30.45
Total taxes withheld			$160.65

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Journal entry to record salaries expense and its related payroll liabilities
Date	General Journal	Debit	Credit
Sept. 30	Salaries Expense	$2100
	payroll taxes expense	160.65
	FICA - Social Security taxes Payable		$130.20
	FICA - Medicare taxes Payable		$30.45
	Salary Payable A/C		$1939.35
	(To record the salary payable after withhelding taxes)