Question

Required Information Use the following information for the Exercises below. (The following Information applies to the questions displayed below.) BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $127,200 pald to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, Its FUTA taxes are 3.1% and SUTA taxes are 2.9% of the first $7,000 pald to its employee. a. b. c. Gross Pay through August 31 $ 6,480 2,800 120,990 Gross Pay for September $ 880 2,100 8, eee Exercise 9-7 Payroll-related journal entries LO P3 Assuming situation a, prepare the employer's September 30 Journal entries to record the employer's payroll taxes expense and its related liabilitles. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Employer Payroll Taxes General Journal Assuming situation a, calculate the employer's payroll taxes expense. (Round your answers to 2 decimal places.) Employer Payroll taxes Tax Amount FUTA FICA-Social Security FICA-Medicare September earnings Tax Rate subject to tax 0.00% 0.00% 800.00 6.20% 800.00 1.45% 0.00 0.00% X Total Payroll Taxes Expense 49.80 11.80 SUTA $ 61.20

Answer 1

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Naming convention is not available, can be slightly different: Solution: Situation a) Employer payroll taxes a) FICA-Social Security FICA-Medicare FUTA SUTA September earnings Tax Rate Tax amt. subject to tax $ 800.00 6.20% $ 49.60 $ 800.00 1.45% $ 11.60 $ 600.00 3.10% $ 18.60 $ 600.00 2.90% $ 17.40 $ 97.20 (7000-6400) (7000-6400) Naming covention is not available can be slightly different: Credit Date Sep.30 Debit 97.20 $ Journal entry Account title and explaination Payroll tax expense (plug) FUTA - Payable SUTA - Payable FICA - Social Secuirty taxes payable FICA - Medicare taxes payable (To record the payroll tax expense) $ 18.60 $ 17.40 $ 49.60 $ 11.60