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answer is partially correct. Salaries and Wages Expense The payroll of Teal Company for September 2025 is as follows. Total payroll was $518,000, of which $100,000 is exempt from Social Security tax because it represented amounts paid in excess of $142,800 to certain employees. The amount paid to employees in excess of $7,000 (the maximum for both federal and state unemployment taxes) was $421,000. Income taxes in the amount of $74,900 were withheld, as was $9,800 in union dues. The state unemployment tax is 3.5%, but Teal Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee's wages to $142,800 and 1.45% in excess of $142,800. The federal unemployment tax rate is 0.8% after state credit. Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Salaries and Wages Expense Debit 518000 Credit FICA Taxes Payable Withholding Taxes Payable Union Dues Payable Cash (To record salaries and wages paid and the employee payroll deductions) Payroll Tax Expense FICA Taxes Payable FUTA Taxes Payable SUTA Taxes Payable (To record employer payroll taxes) 16982.20 74900 9800 416317.80 0 0

answer is partially correct. Salaries and Wages Expense The payroll of Teal Company for September 2025 is as follows. Total payroll was $518,000, of which $100,000 is exempt from Social Security tax because it represented amounts paid in excess of $142,800 to certain employees. The amount paid to employees in excess of $7,000 (the maximum for both federal and state unemployment taxes) was $421,000. Income taxes in the amount of $74,900 were withheld, as was $9,800 in union dues. The state unemployment tax is 3.5%, but Teal Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee's wages to $142,800 and 1.45% in excess of $142,800. The federal unemployment tax rate is 0.8% after state credit. Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Salaries and Wages Expense Debit 518000 Credit FICA Taxes Payable Withholding Taxes Payable Union Dues Payable Cash (To record salaries and wages paid and the employee payroll deductions) Payroll Tax Expense FICA Taxes Payable FUTA Taxes Payable SUTA Taxes Payable (To record employer payroll taxes) 16982.20 74900 9800 416317.80 0 0

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
12th Edition
ISBN:9781305084087
Author:Cathy J. Scott
Publisher:Cathy J. Scott
Chapter7: Employee Earnings And Deductions
Section: Chapter Questions
Problem 5E
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PLEASE HELP ME WITH THIS ACCOUNTING PROBLEM!!!!!

answer is partially correct. Salaries and Wages Expense The payroll of Teal Company for September 2025 is as follows. Total payroll was $518,000, of which $100,000 is exempt from Social Security tax because it represented amounts paid in excess of $142,800 to certain employees. The amount paid to employees in excess of $7,000 (the maximum for both federal and state unemployment taxes) was $421,000. Income taxes in the amount of $74,900 were withheld, as was $9,800 in union dues. The state unemployment tax is 3.5%, but Teal Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee's wages to $142,800 and 1.45% in excess of $142,800. The federal unemployment tax rate is 0.8% after state credit. Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Salaries and Wages Expense Debit 518000 Credit FICA Taxes Payable Withholding Taxes Payable Union Dues Payable Cash (To record salaries and wages paid and the employee payroll deductions) Payroll Tax Expense FICA Taxes Payable FUTA Taxes Payable SUTA Taxes Payable (To record employer payroll taxes) 16982.20 74900 9800 416317.80 0 0
Transcribed Image Text:answer is partially correct. Salaries and Wages Expense The payroll of Teal Company for September 2025 is as follows. Total payroll was $518,000, of which $100,000 is exempt from Social Security tax because it represented amounts paid in excess of $142,800 to certain employees. The amount paid to employees in excess of $7,000 (the maximum for both federal and state unemployment taxes) was $421,000. Income taxes in the amount of $74,900 were withheld, as was $9,800 in union dues. The state unemployment tax is 3.5%, but Teal Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee's wages to $142,800 and 1.45% in excess of $142,800. The federal unemployment tax rate is 0.8% after state credit. Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Salaries and Wages Expense Debit 518000 Credit FICA Taxes Payable Withholding Taxes Payable Union Dues Payable Cash (To record salaries and wages paid and the employee payroll deductions) Payroll Tax Expense FICA Taxes Payable FUTA Taxes Payable SUTA Taxes Payable (To record employer payroll taxes) 16982.20 74900 9800 416317.80 0 0
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