According to a summary of the payroll of Guthrie Co., $600,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $56,000 was subject to state and federal unemployment taxes. Required:A.Calculate the employer’s payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.6%.B.On December 31, journalize the entry to record the accrual of payroll taxes. Refer to the Chart of Accounts for exact wording of account titles.

Payroll Tax refers to those taxes that employers withhold from the wages or salaries of the…

Answered: According to a summary of the payroll…

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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According to a summary of the payroll of Guthrie Co., $600,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $56,000 was subject to state and federal unemployment taxes.

	Required:
A.	Calculate the employer’s payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.6%.
B.	On December 31, journalize the entry to record the accrual of payroll taxes. Refer to the Chart of Accounts for exact wording of account titles.

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