Crane Company has the following data for the weekly payroll ending January 31. Hours Employee M T W T F S Hourly Rate Federal Income Tax Withholding Health Insurance L. Helton 8 8 10 8 10 3 $10 $34 $10 R. Kenseth 8 8 8 8 8 4 14 37 25 D. Tavaras 9 11 8 8 9 0 17 58 25 Employees are paid 1½ times the regular hourly rate for all hours worked in excess of 40 hours per week. FICA taxes are 7.65% (the 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of 1.45% on all salaries and wages). Crane Company is subject to 5.4% state unemployment taxes and 0.6% federal unemployment taxes on the first $7,000 of gross earnings. Prepare the journal entry to record Crane’s payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 15.25.) Date Account Titles and Explanation Debit Credit Jan. 31 enter an account title for the journal entry on January 31 enter a debit amount enter a credit amount enter an account title for the journal entry on January 31 enter a debit amount enter a credit amount enter an account title for the journal entry on January 31 enter a debit amount enter a credit amount enter an account title for the journal entry on January 31 enter a debit amount enter a credit amount

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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Crane Company has the following data for the weekly payroll ending January 31.

	Hours
Employee	M	T	W	T	F	S	Hourly Rate	Federal Income Tax Withholding	Health Insurance
L. Helton	8	8	10	8	10	3	$10	$34	$10
R. Kenseth	8	8	8	8	8	4	14	37	25
D. Tavaras	9	11	8	8	9	0	17	58	25

Employees are paid 1½ times the regular hourly rate for all hours worked in excess of 40 hours per week. FICA taxes are 7.65% (the 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of 1.45% on all salaries and wages). Crane Company is subject to 5.4% state unemployment taxes and 0.6% federal unemployment taxes on the first $7,000 of gross earnings.

Prepare the journal entry to record Crane’s payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 15.25.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 31	enter an account title for the journal entry on January 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 31	enter a debit amount	enter a credit amount

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