Alamar Petroleum Company offers its employees the option of contributing retirement funds up to 5% of their salaries, with the contribution being matched by Alamar. The company also pays 80% of medical and life insurance premiums. Deductions relating to these plans and other payroll information for the first biweekly payroll period of February are listed as follows:
Alamar Petroleum Company offers its employees the option of contributing retirement funds up to 5% of their salaries, with the contribution being matched by Alamar. The company also pays 80% of medical and life insurance premiums. Deductions relating to these plans and other payroll information for the first biweekly payroll period of February are listed as follows:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Payroll taxes:
Federal unemployment tax rate
State unemployment tax rate (after SUTA deduction)
Social Security tax rate
Medicare tax rate
0.60
5.40
6.20
1.45
%
%
%
%
Required:
Prepare the appropriate journal entries to record salaries expense and payroll tax expense for the biweekly pay period. Assume that](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc85d7f8d-cee4-4219-8ba5-4e5c7921a0cd%2Faf4fe596-fc81-4d51-b4c9-7fc4e917db3d%2F8yxy23d_processed.png&w=3840&q=75)
Transcribed Image Text:Payroll taxes:
Federal unemployment tax rate
State unemployment tax rate (after SUTA deduction)
Social Security tax rate
Medicare tax rate
0.60
5.40
6.20
1.45
%
%
%
%
Required:
Prepare the appropriate journal entries to record salaries expense and payroll tax expense for the biweekly pay period. Assume that
![Alamar Petroleum Company offers its employees the option of contributing retirement funds up to 5% of their salaries, with the contribution being matched by Alamar. The company also pays 80%
of medical and life insurance premiums. Deductions relating to these plans and other payroll information for the first biweekly payroll period of February are listed as follows:
Wages and salaries
Employee contribution to voluntary retirement plan
Medical insurance premiums
Life insurance premiums
Federal income taxes to be withheld
Local income taxes to be withheld
$ 3,700,000
101,000
59,000
10,700
570,000
70,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc85d7f8d-cee4-4219-8ba5-4e5c7921a0cd%2Faf4fe596-fc81-4d51-b4c9-7fc4e917db3d%2Ftqfg9ho_processed.png&w=3840&q=75)
Transcribed Image Text:Alamar Petroleum Company offers its employees the option of contributing retirement funds up to 5% of their salaries, with the contribution being matched by Alamar. The company also pays 80%
of medical and life insurance premiums. Deductions relating to these plans and other payroll information for the first biweekly payroll period of February are listed as follows:
Wages and salaries
Employee contribution to voluntary retirement plan
Medical insurance premiums
Life insurance premiums
Federal income taxes to be withheld
Local income taxes to be withheld
$ 3,700,000
101,000
59,000
10,700
570,000
70,000
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