A company pays employees at the end of each month. Payroll information is listed below for January, the first month of the fiscal year. Assume that none of the employees exceeds the federal unemployment tax maximum salary of $7,000 in January. Salaries Federal and state income taxes withheld Federal unemployment tax rate State unemployment tax rate (after FUTA deduction) Social Security (FICA) tax rate $800,000 150,000 0.80% 5.40% 7.65% Required: Record salaries expense and payroll tax expense for the January pay period. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
A company pays employees at the end of each month. Payroll information is listed below for January, the first month of the fiscal year. Assume that none of the employees exceeds the federal unemployment tax maximum salary of $7,000 in January. Salaries Federal and state income taxes withheld Federal unemployment tax rate State unemployment tax rate (after FUTA deduction) Social Security (FICA) tax rate $800,000 150,000 0.80% 5.40% 7.65% Required: Record salaries expense and payroll tax expense for the January pay period. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A company pays employees at the end of each month. Payroll information is listed below for January, the first month of the fiscal year.
Assume that none of the employees exceeds the federal unemployment tax maximum salary of $7,000 in January.
Salaries
Federal and state income taxes withheld
Federal unemployment tax rate
State unemployment tax rate (after FUTA deduction)
Social Security (FICA) tax rate
View transaction list
Required:
Record salaries expense and payroll tax expense for the January pay period. (If no entry is required for a particular
transaction/event, select "No Journal Entry Required" in the first account field.)
Journal entry worksheet
<
1 2
Record the employer payroll taxes.
Note: Enter debits before credits.
Date
January 31
$800,000
150,000
General Journal
0.80%
5.40%
7.65%
Debit
Credit
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