Question

Vulcra, Inc., has a semimonthly payroll of $67,000 on September 15, 20--. The total payroll is taxable under FICA Taxes-HI; $63,850 is taxable under FICA Taxes-OASDI; and $10,300 is taxable under FUTA and SUTA. The state contribution rate for the company is 4.1%. The amount withheld for federal income taxes is $9,911. The amount withheld for state income taxes is $1,410.

a. Journalize the payment of the wages, and record the payroll taxes on September 15.

If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.

	Account	Debit	Credit
Payment of wages	Wages Expense
	FICA Taxes Payable-OASDI
	FICA Taxes Payable-HI
	Employees FIT Payable
	Employees SIT Payable
	Cash
Payroll taxes	Payroll Taxes
	FICA Taxes Payable-OASDI
	FICA Taxes Payable-HI
	FUTA Taxes Payable
	SUTA Taxes Payable

Answer 1

1) Credit Account Titles and Explanation Debit Wages Expense $67,000.00 FICA Taxes Payable-OASDI ($63,850 * 6.20%) FICA Taxes Payable-HI ($67.000 * 1.45%) Employee FIT Payable Employee SIT Payable Cash (To record payment of wages) $3,958.70 $971.50 $9.911.00 $1.410.00 $50.748.80 2) Credit Debit $5,970.50 Account Titles and Explanation Payroll Taxes FICA Taxes Payable-OASDI FICA Taxes Payable-HI FUTA Taxes Payable ($10,300 * 6.0%) SUTA Taxes Payable ($10.300 * 4.1%) (To record payment of taxes) $3,958.70 $971.50 $618.00 $422.30