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Assuming situation (a), prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related liabilities.

Assuming situation (a), prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related liabilities.

FINANCIAL ACCOUNTING
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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! Required information [The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $132,900 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. a. b. C. Gross Pay through August 31 $ 5,700 Payroll Taxes Expense FUTA SUTA 3,200 127,800 Assuming situation (a), prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related liabilities. Complete this question by entering your answers in the tabs below. Gross Pay for September General Journal $ 1,800 3,300 9,200 Employer Payroll taxes FICA-Social Security FICA-Medicare Compute the payroll taxes expense. Note: Round your answers to 2 decimal places. September earnings subject to tax Tax Rate 800.00 800.00 600.00 600.00 6.20% $ 1.45% 0.60% 5.40% Total Payroll Taxes Expense $ Tax Amount 49.60 11.60 3.60 32.40 97.20
Transcribed Image Text:! Required information [The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $132,900 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. a. b. C. Gross Pay through August 31 $ 5,700 Payroll Taxes Expense FUTA SUTA 3,200 127,800 Assuming situation (a), prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related liabilities. Complete this question by entering your answers in the tabs below. Gross Pay for September General Journal $ 1,800 3,300 9,200 Employer Payroll taxes FICA-Social Security FICA-Medicare Compute the payroll taxes expense. Note: Round your answers to 2 decimal places. September earnings subject to tax Tax Rate 800.00 800.00 600.00 600.00 6.20% $ 1.45% 0.60% 5.40% Total Payroll Taxes Expense $ Tax Amount 49.60 11.60 3.60 32.40 97.20
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