BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 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 Gross Pay for August 31 $ 6,700 September $ 400 2,300 131,700 2,400 8,300 ssuming situation (a), prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and it elated liabilities.
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 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 Gross Pay for August 31 $ 6,700 September $ 400 2,300 131,700 2,400 8,300 ssuming situation (a), prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and it elated liabilities.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 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.
b.
C.
Gross Pay through
August 31
$ 6,700
2,300
131,700
Gross Pay for
September
$ 400
2,400
8,300
Assuming situation (a), prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its
related liabilities.
Transcribed Image Text:Payroll Taxes
Expense
General
Journal
Assuming situation (a), compute the payroll taxes expense.
Note: Round your answers to 2 decimal places.
Employer Payroll taxes
Show Transcribed Text
September earnings
subject to tax
Journal entry worksheet
<
Note: Enter debits before credits.
Date
September
30
Prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its relat
Note: Round your answers to 2 decimal places.
View transaction list
Tax Rate
Record the employer's September 30 payroll taxes expense and its related
liabilities.
General Journal
U
Debit
Tax Amount
Credit
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