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BMX Company has one

BMX Company has one

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 $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. The employee's gross pay is shown below. Gross Pay through August 31 $6,500 Prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related liabilities. Gross Pay for September $ 1,900 Complete this question by entering your answers in the tabs below. General Journal Prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related liabilities. (Round your answers to 2 decimal places.) View transaction list
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 $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. The employee's gross pay is shown below. Gross Pay through August 31 $6,500 Prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related liabilities. Gross Pay for September $ 1,900 Complete this question by entering your answers in the tabs below. General Journal Prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related liabilities. (Round your answers to 2 decimal places.) View transaction list
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