Question

The payroll of Crane Company for September 2019 is as follows.

Total payroll was $464,000, of which $118,000 is exempt from Social Security tax because it represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 (the maximum for both federal and state unemployment tax) was $418,000. Income taxes in the amount of $86,000 were withheld, as was $8,500 in union dues. The state unemployment tax is 3.5%, but Crane Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee’s wages to $128,400 and 1.45% in excess of $128,400. No employee for Crane makes more than $135,000. The federal unemployment tax rate is 0.8% after state credit.

Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts .Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation Debit Credit

enter an account title to record wages and salaries paid enter a debit amount enter a credit amount

enter an account title to record wages and salaries paid enter a debit amount enter a credit amount

enter an account title to record wages and salaries paid enter a debit amount enter a credit amount

enter an account title to record wages and salaries paid enter a debit amount enter a credit amount

enter an account title to record wages and salaries paid enter a debit amount enter a credit amount

(To record wages and salaries paid)

enter an account title to record employer payroll taxes enter a debit amount enter a credit amount

enter an account title to record employer payroll taxes enter a debit amount enter a credit amount

enter an account title to record employer payroll taxes enter a debit amount enter a credit amount

enter an account title to record employer payroll taxes enter a debit amount enter a credit amount

(To record employer payroll taxes)

Answer 1

0 solution - ca) sodir Credit Account title & explanation 464000 86000 Salaries and wages expense with hold tard payable FICA Taxes payable IC 44000 - 118000) x7657,+11800021.457] Union Dues payable 26469 8500 cash 34303) b) payroll Tax expense 7389 126469 FICA Taxes payable FUTA Taxes payable (164000-418000X0.8% SUTA Taxes payable (164000-418000 (3-5 -2.3 %) 368 552