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:

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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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
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
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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