Question

This Question: 3 pts 340f 45 (44 complete) This Test: 100 pts possble oovertime pay Based on Troy's WA Rarenz weholds in etanes at 20% ofhis gross pay As ofJuly 31, Try ATroy To osworks r Ran nzCo pary aa year had $22,400 of oumulative earnings eans a mor Ny salary of $3.200 Threis (Clck the lcon to view pnyroll tax rahe infomation) Joumalize the aconual of salary espense for Ramire Company elated to the employment of Troy Torres for the month of August ld bt then credits. Round all amounts to the nearest cent Salect the explanation on the last line of the joumal entry lable Date Accounts and Explanation Debit Credit Peyroll Tax Expense Salaries Payable Choose from any list or enter any number in the input fleids and then continue to the next question

Answer 1

Journal Entries:

Date Accounts and Explanations August Salaries Expense Debit (S) Credit (S) 300 Employees Income Tax Payable (S3,200 20/100) FICA-OASDI Tax Payable ($3.200*6.20/100) FICA-Medicare Taxes Payable ($3,200* 1.45/100) Salaries Payable ($3,200- (S640 + S198.40+S46.40)) 640 108.40 46.40 2,315.20 To recor the salaies expense and paroll withholdings) Payroll Tax Expense 244.80 FICA-OASDI Tax Payable ($3.200*6.20/100) FICA-Medicare Taxes Payable ($3,2001.45/100) 198.40 46.40 (To record the paayroll tax expense)

FUTA and SUTA taxes will not levied because the accumulated earnings are exceeded the limit of $7,000.