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(a) Prepare a tabular summary to record salaries and wages expense and salaries and wages payable on March 31. Assume that wages earned during March will be paid during April. (b) Prepare a tabular summary to record the company's payroll tax expense.

(a) Prepare a tabular summary to record salaries and wages expense and salaries and wages payable on March 31. Assume that wages earned during March will be paid during April. (b) Prepare a tabular summary to record the company's payroll tax expense.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During the month of March, Cullumber Company's employees earned wages of $74,000. Withholdings related to these wages were $5,661 for FICA $8,672 for federal income tax, $3,584 for state income tax, and $463 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $809 for state unemployment tax. (a) Prepare a tabular summary to record salaries and wages expense and salaries and wages payable on March 31. Assume that wages earned during March will be paid during April. (b) Prepare a tabular summary to record the company's payroll tax expense. Include margin explanations for changes in revenues and expenses. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) (a) Mar. 31 $ (b) Mar. 31 Assets Cash Salaries & Wages Payable 74000 $ 55619 $ Federal Income Taxes Payable FICA Ta 86725 $
Transcribed Image Text:During the month of March, Cullumber Company's employees earned wages of $74,000. Withholdings related to these wages were $5,661 for FICA $8,672 for federal income tax, $3,584 for state income tax, and $463 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $809 for state unemployment tax. (a) Prepare a tabular summary to record salaries and wages expense and salaries and wages payable on March 31. Assume that wages earned during March will be paid during April. (b) Prepare a tabular summary to record the company's payroll tax expense. Include margin explanations for changes in revenues and expenses. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) (a) Mar. 31 $ (b) Mar. 31 Assets Cash Salaries & Wages Payable 74000 $ 55619 $ Federal Income Taxes Payable FICA Ta 86725 $
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