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. Gross Pay through Gross Pay for September $ 2,200 August 31 $ 5,100 2,600 132,000 2,700 8,600 Assuming situation (a), prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related 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. Gross Pay through Gross Pay for September $ 2,200 August 31 $ 5,100 2,600 132,000 2,700 8,600 Assuming situation (a), prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related liabilities.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting
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.
3.
b.
C.
Gross Pay through
August 31
$ 5,100
2,600
132,000
Gross Pay for
September
$ 2,200
2,700
8,600
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.
Employer Payroll taxes
Payroll Taxes General
Expense
Journal
Assuming situation (a), compute the payroll taxes expense. (Round your answers to 2 decimal places.)
September earnings
subject to tax
Tax Rate
$
Tax Amount
0.00
General Journal >
Transcribed Image Text:1
Record the employer's September 30 payroll taxes expense and its related
liabilities.
Note: Enter debits before credits.
Date
September
30
General Journal
Debit
Credit
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