b. Assume that the employees of Purnell, Inc., must also pay state contributions (disability insurance) of 1% on the taxable payroll of Example 6-5 $24,100 and that the employees contributions are to be deducted by the employer. Journalize the September 15 payment of wages, The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be: assuming that the state contributions of the employees are kept in a separate account. Debit Credit For a compound transaction, if an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. Wages Expense 24,762.70 FICA Taxes Payable-OASDI 1,535.29 Date Account Debit Credit FICA Taxes Payable-HI 359.06 Sept. 15 Wage Expense v 8,500 x FIT Payable 3,714.00 FICA Taxes Payable-OASDI V 650.25 X SIT Payable 55.25 FICA Taxes Payable-HI V Group Insurance Payments W/H 54.70 Employees Disability Contributions Payable Cash 19,044.40 Employees FIT Payable v Example 6-7 Employees SIT Payable v Cash v The journal entry to record the payroll tax entry from Figure 6.1 on pages 6-2 and 6-3 would be (assume a SUTA tax rate of 3.0%): Debit Credit Feedbeck Payroll Taxes 2,785.81 FICA Taxes Payable-OASDI 1,535.29 FICA Taxes Payable-HI 359.06 FUTA Taxes Payable 148.58 SUTA Taxes Payable 742.88 Purnell, Inc., has a semimonthly payroll of $53,900 on September 15, 20--. The total payroll is taxable under FICA Taxes-HI; $50,400 is taxable under FICA Taxes-OASDI; and $7,300 is taxable under FUTA and SUTA. The state contribution rate for the company is 3.1%. The amount withheld for federal income taxes is $6,995. The amount withheld for tate jocome taver je 1010
b. Assume that the employees of Purnell, Inc., must also pay state contributions (disability insurance) of 1% on the taxable payroll of Example 6-5 $24,100 and that the employees contributions are to be deducted by the employer. Journalize the September 15 payment of wages, The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be: assuming that the state contributions of the employees are kept in a separate account. Debit Credit For a compound transaction, if an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. Wages Expense 24,762.70 FICA Taxes Payable-OASDI 1,535.29 Date Account Debit Credit FICA Taxes Payable-HI 359.06 Sept. 15 Wage Expense v 8,500 x FIT Payable 3,714.00 FICA Taxes Payable-OASDI V 650.25 X SIT Payable 55.25 FICA Taxes Payable-HI V Group Insurance Payments W/H 54.70 Employees Disability Contributions Payable Cash 19,044.40 Employees FIT Payable v Example 6-7 Employees SIT Payable v Cash v The journal entry to record the payroll tax entry from Figure 6.1 on pages 6-2 and 6-3 would be (assume a SUTA tax rate of 3.0%): Debit Credit Feedbeck Payroll Taxes 2,785.81 FICA Taxes Payable-OASDI 1,535.29 FICA Taxes Payable-HI 359.06 FUTA Taxes Payable 148.58 SUTA Taxes Payable 742.88 Purnell, Inc., has a semimonthly payroll of $53,900 on September 15, 20--. The total payroll is taxable under FICA Taxes-HI; $50,400 is taxable under FICA Taxes-OASDI; and $7,300 is taxable under FUTA and SUTA. The state contribution rate for the company is 3.1%. The amount withheld for federal income taxes is $6,995. The amount withheld for tate jocome taver je 1010
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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Transcribed Image Text:b. Assume that the employees of Purnell, Inc., must also pay state contributions (disability insurance) of 1% on the taxable payroll of
Example 6-5
$24,100 and that the employees' contributions are to be deducted by the employer. Journalize the September 15 payment of wages,
The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be:
assuming that the state contributions of the employees are kept in a separate account.
Debit
Credit
For a compound transaction, if an amount box does not require an entry, leave it blank. Round your answers to the nearest
cent.
Wages Expense
24,762.70
FICA Taxes Payable-OASDI
1,535.29
Date
Account
Debit
Credit
FICA Taxes Payable-HI
359.06
Sept. 15 Wage Expense v
8,500 x
FIT Payable
3,714.00
FICA Taxes Payable-OASDI
650.25 x
SIT Payable
55.25
FICA Taxes Payable-HI V
Group Insurance Payments W/H
54.70
Employees Disability Contributions Payable v
Cash
19,044.40
Employees FIT Payable v
Employees SIT Payable v
Example 6-7
Cash v
The journal entry to record the payroll tax entry from Figure 6.1 on pages 6-2 and 6-3 would be (assume a SUTA tax rate of 3.0%):
Debit
Credit
Feedback
Payroll Taxes
2,785.81
FICA Taxes Payable-OASDI
1,535.29
FICA Taxes Payable-HI
359.06
FUTA Taxes Payable
148.58
SUTA Taxes Payable
742.88
Purnell, Inc., has a semimonthly payroll of $53,900 on September 15, 20--. The total payroll is taxable under FICA Taxes-HI; $50,400 is taxable under FICA Taxes-OASDI; and
$7,300 is taxable under FUTA and SUTA. The state contribution rate for the company is 3.1%. The amount withheld for federal income taxes is $6,995. The amount withheld for
state income taxes is $1,010.
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