I'm not sure how I am calculating State Unemployment Tax Payable, Federal Unemployment Tax Payable, and Payroll Tax Expense incorrect. Payroll entriesInstructionsInstructionsWidmer Company had gross wages of $310,000 during the week ended June 17. The amount of wages subject to social security tax was$310,000, while the amount of wages subject to federal and state unemployment taxes was $35,000. Tax rates are as follows:Social securityChart of Accounts General JournalMedicareState unemploymentFederal unemployment6.0%1.5%5.4%0.8%The total amount withheld from employee wages for federal taxes $47,0Required:a. Journalize the entry to record the payroll for the week of June 17.b. Journalize the entry to record the payroll tax expense incurred for the week of June 17. InstructionsGeneral JournalDATE✓Jun. 17 Wages ExpenseDESCRIPTIONSocial Security Tax PayableMedicare Tax PayableEmployees Federal Income Tax PayableWages Payable✓Jun. 17 Payroll Tax ExpenseSocial Security Tax PayableMedicare Tax PayableState Unemployment Tax PayableFederal Unemployment Tax PayableJOURNAL✓✓✓✓✓✓POST. REF.DEBIT310,000.0021,514.00✓Shaded cells have feedback.ACCOUNTINScore: 117/123CREDIT18,600.004,650.0047,000.00239,750.0018,600.004,650.002,538.00376.00✓ASSETSLIABIL↑↑↑↑↑↑↑↑

Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…

Answered: a. Journalize the entry to record the…

a. Journalize the entry to record the payroll for the week of June 17. b. Journalize the entry to record the payroll tax expense incurred for the week of June 17.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: This doesn't seem correct. What would be Omar's self-employement tax liability if he didn't

A: Dear student Yes . Your doubt is exactly correct. Due to…

Q: Which statement is NOT true about the structure of the Earned Income Tax Credit (EITC)? A. EITC…

A: Answer:- Earned Income Tax Credit (EITC) meaning:- The Earned Tax Credit (EITC), is a kind of tax…

Q: what are the advantages and disadvantages of the payroll tax deferral?

A: Highlights of the payroll tax deferral scheme:- It applies to all those employees whose before tax…

Q: PLEASE ANSWER ALL QUESTIONS IN BOTH 1 AND 2 PLEASE. 1. Some accountants believe that deferred taxes…

A: Temporary differences are defined as differences between the carrying amount of assets and…

Q: For each of the listed payroll-related taxes, indicate whether they generally apply to employees…

A: Payroll taxes are taxes paid to Internal Revenue Service (IRS) and withheld, charged or levied on…

Q: Examples for the permanent differences between financial reporting and reporting for the IRS in…

A: Answer:- Financial reporting meaning:- The process for recording and communicating financial…

Q: What is the term for the employer's mandatory payroll taxes that the government has written into…

A: A payroll tax is a percentage withheld from an employee's pay by an employer who pays it to the…

Q: can you help me how to Explain how an employer can receive a credit against the FUTA tax due.

A: FUTA stands for Federal Unemployment Tax Act under federal law of US. FUTA tax is paid by the…

Q: Which of the following does NOT apply to both a W−2 and a W−3? A. Reports the total amount of…

A: IRS forms W-2 and W-3 both are submitted by the employer to Social Security Administration and both…

Q: For any given year, your income tax payable can never exceed income tax expense. a) True b) False

A: Lets understand the basics. When there is temporary taxable difference arise book profit and tax…

Q: Which of the following is an adjustment that will generally result in lower tax liability for an…

A: A tax is a charge which is levied by the government on the taxable income of a taxpayer. A tax…

Q: Some people earn money that is paid to them in cash and then do not include this as income when they…

A: All people require to pay tax on all income they earn either in cash or through any other mode when…

Q: Which of the following taxes has a ceiling and is only paid by the employer? Group of answer choices…

A: Income taxes is the amount that is charged by the government on the income earned by an individual…

Q: The Tax Code was created to punished people who did not pay taxes. True False

A: Tax code is created for individual and who are in businesses .In this tax code lots of sections,…

Q: Which of the following statements about RRSP is false? ○ 1) The income in an RRSP accumulates at the…

A: Under Registered Retirement Savings Plan (RRSP), money placed in an account grows tax-free until…

Q: Regarding taxpayers having a tough time of volume of tax regulations. What does the concept…

A: Substance over form: It is an accounting concept, which means that the business must record those…

Q: In a payroll journal entry, a credit to Federal Withholding Tax Payable indicates a.Federal taxes…

A: Solution: In payroll journal entry, Payroll expense are debited, amount paid to employee is credited…

Q: Which tax is NOT withheld from an employee? Select one: Federal tax State tax Mortgage tax All of…

Q: Describe some reasons why it is a good idea to file a tax return if you have earned income, even if…

A: If there is no tax liability, even then the Income-tax return (ITR) is mandatory to file if the…

Q: The Internal Revenue Service levies a small service fee for employers who utilizes the Electronic…

A: Internal revenue service is also referred to as IRS. It is an agency in the US which is responsible…

Q: Some payroll taxes are paid by both employees and employers. Others are paid only by employers.…

A: Some payroll taxes are borne by both employer and employee while some are paid only by employees or…

Q: Which of the following is NOT a valid use of Form 990-1? O Request credit for certain excise taxes…

A: Filling out Form 990-T is how exempt organizations:declare any unrelated business revenue.Determine…

Q: An individual taxpayer can adopt either the calendar or fiscal year period for purposes of filing…

A: Tax return:- A tax return is referred as the form or forms that is filled with a tax authority and…

Q: Which of the following would appear on payroll tax Form 941? State unemployment tax State Income…

A: Form 941 of payroll taxes is used by employers to report income taxes, Social Security tax, or…

Q: Identify the following statement that is false. a. If an employer is not required to withhold…

A: Withholding - Withholding is the portion of an employee's wages that is not included in his or her…

Q: wage and payroll tax expenses are somewhat unique because?

A: An employer's federal payroll tax responsibilities include withholding from an employee's…

Q: true or false In most situations, the total Social Security taxes levied on employers will exceed…

A: The Social Security tax rate for both employees and employers is 6.2% of employee compensation (for…

Concept explainers

Payroll Entries

Payroll is a comprehensive record of employees that are paid by the company. Payroll classifies employees into various categories according to their function and pays scale (basic wage, allowance, income tax, other taxes, employee loans, etc.). Payroll processes form the bedrock of every organization as it contains sensitive information on the ‘wage and paycheck’ portion of the company’s strength—its employees. The organization needs to keep a track of the employees currently on the payroll, the net payout for the company, the record of transactions related to the employees including deductions and payroll taxes to identify the liability and its effect on the balance sheet (and other financial statements). Payroll records also include qualitative factors such as the conduct of the employee.

Question

I'm not sure how I am calculating State Unemployment Tax Payable, Federal Unemployment Tax Payable, and Payroll Tax Expense incorrect.

Payroll entries
Instructions
Instructions
Widmer Company had gross wages of $310,000 during the week ended June 17. The amount of wages subject to social security tax was
$310,000, while the amount of wages subject to federal and state unemployment taxes was $35,000. Tax rates are as follows:
Social security
Chart of Accounts General Journal
Medicare
State unemployment
Federal unemployment
6.0%
1.5%
5.4%
0.8%
The total amount withheld from employee wages for federal taxes $47,0
Required:
a. Journalize the entry to record the payroll for the week of June 17.
b. Journalize the entry to record the payroll tax expense incurred for the week of June 17.

Instructions
General Journal
DATE
✓
Jun. 17 Wages Expense
DESCRIPTION
Social Security Tax Payable
Medicare Tax Payable
Employees Federal Income Tax Payable
Wages Payable
✓
Jun. 17 Payroll Tax Expense
Social Security Tax Payable
Medicare Tax Payable
State Unemployment Tax Payable
Federal Unemployment Tax Payable
JOURNAL
✓
✓
✓
✓
✓
✓
POST. REF.
DEBIT
310,000.00
21,514.00
✓
Shaded cells have feedback.
ACCOUNTIN
Score: 117/123
CREDIT
18,600.00
4,650.00
47,000.00
239,750.00
18,600.00
4,650.00
2,538.00
376.00
✓
ASSETS
LIABIL
↑
↑
↑
↑
↑
↑
↑
↑

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

When a petition is filed with the Tax Court, the taxpayer is required to pay the deficiency only if he loses, not before. (True/False)
The amount of federal income tax to be withheld from employee's paychecks can be calculated by
How are the electronic tax deposits transferred from the employer’s account to the IRS?
Explain one difference between the W2 and 1099 tax forms.Describe one consequence of filling out the wrong tax form.Describe the difference between “federal income taxes withheld” and “income tax liability”.
What are the specific requirements of paid tax return preparers? In other words, what must they obtain from the IRS in order to charge money for tax preparation? What is the statute of limitations for income tax returns? Are there any exceptions to the general rule?
Why are deductions from employees’ earnings classified as liabilities for the employer? For each of the following payroll-related taxes, indicate whether they generally apply to (a) employees only, (b) employers only, or (c) both employees and employers: Federal income tax Medicare tax Social security tax Federal unemployment compensation tax State unemployment compensation tax
1. Employees are subject to taxes withheld from their paychecks. a. List the federal taxes withheld form most employee's paychecks. b. Give the title of the accounts credited by amounts withheld. c. Social security tax d. Federal unemployment compensation tax e. Sate unemployment compensation tax
The tax law refers to gross income, yet the term gross income is not found on Form 1040. Explain.
Social Security taxes are regressive because Question 13 options:they apply only to rich people.they are applied to retired people only.they are not applied to income beyond a certain amount.they are applied to welfare recipients.Save
Which of the following is not an employer payroll tax? Multiple Choice Social Security tax equal to that withheld from employees. Medicare tax equal to that withheld from employees. State unemployment tax. Federal unemployment tax. Federal income tax equal to that withheld from employees.
Which of the following are not included in an employer’s payroll tax expense? a) state income taxes b) employer portion of FICA taxes c) state unemployment taxes d) federal unemployment taxes
Which of the following statements about the FICA tax is not true? a. The income amount subject to the Social Security portion of FICA tax has increased significantly over the years. b. No FICA taxes are required to be paid by employees or employers in 2020 due to COVID c. The FICA tax is composed of two parts, Social Security and Medicare. xd. Self-employed individuals pay self-employment taxes. Oe. Wages subject to FICA tax that are received by a self-employed individual reduce the individual's maximum Social Security tax base.