CHP#10_4 Recording Payroll and Payroll Taxes England, Inc., had the following payroll for March: Officers’ salaries $39,000 Sales salaries 60,000 Federal income taxes withheld 21,000 FICA taxes withheld 7,900 Health insurance premiums withheld 2,500 Salaries (included above) subject to federal unemployment taxes 55,000 Salaries (included above) subject to state unemployment taxes 65,000 Required Prepare journal entries on March 31 to record: a. Accrual of the monthly payroll. b. Payment of the net payroll. c. Accrual of employer’s payroll taxes. (Assume that the FICA tax matches the amount withheld, the federal unemployment tax is 0.6 percent, and the state unemployment tax is 5.4 percent.) d. Payment of all liabilities related to this payroll. (Assume that all are settled at the same time.)
CHP#10_4 Recording Payroll and Payroll Taxes England, Inc., had the following payroll for March: Officers’ salaries $39,000 Sales salaries 60,000 Federal income taxes withheld 21,000 FICA taxes withheld 7,900 Health insurance premiums withheld 2,500 Salaries (included above) subject to federal unemployment taxes 55,000 Salaries (included above) subject to state unemployment taxes 65,000 Required Prepare journal entries on March 31 to record: a. Accrual of the monthly payroll. b. Payment of the net payroll. c. Accrual of employer’s payroll taxes. (Assume that the FICA tax matches the amount withheld, the federal unemployment tax is 0.6 percent, and the state unemployment tax is 5.4 percent.) d. Payment of all liabilities related to this payroll. (Assume that all are settled at the same time.)
College Accounting (Book Only): A Career Approach
12th Edition
ISBN:9781305084087
Author:Cathy J. Scott
Publisher:Cathy J. Scott
Chapter8: Employer Taxes, Payments, And Reports
Section: Chapter Questions
Problem 3E
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CHP#10_4
Recording Payroll and Payroll Taxes
England, Inc., had the following payroll for March:
Officers’ salaries | $39,000 |
Sales salaries | 60,000 |
Federal income taxes withheld | 21,000 |
FICA taxes withheld | 7,900 |
Health insurance premiums withheld | 2,500 |
Salaries (included above) subject to federal |
55,000 |
Salaries (included above) subject to state unemployment taxes | 65,000 |
Required
Prepare
a. Accrual of the monthly payroll.
b. Payment of the net payroll.
c. Accrual of employer’s payroll taxes. (Assume that the FICA tax matches the amount withheld, the federal unemployment tax is 0.6 percent, and the state unemployment tax is 5.4 percent.)
d. Payment of all liabilities related to this payroll. (Assume that all are settled at the same time.)
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