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Cullumber Company has the following data for the

Cullumber Company has the following data for the

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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Current Attempt in Progress Cullumber Company has the following data for the weekly payroll ending January 31 Employee M T L Helton 8 8 R. Kenseth 8 D. Tavaras 9 8 10 Hours W Jan 31 10 8 8 T F 8 8 8 10 8 9 5 3 3 0 Date Account Titles and Explanation Hourly Rate $10 12 15 Federal Income Tax Withholding $34 37 50 Health Insurance Debit 10 Employees are paid 1% 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). Cullumber Company is subject to 5.4% state unemployment taxes and 0.6% federal unemployment taxes on the first $7,000 of gross earnings $10 Prepare the journal entry to record Cullumber's payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, eg. 15.25) Credit 25 25
Transcribed Image Text:Current Attempt in Progress Cullumber Company has the following data for the weekly payroll ending January 31 Employee M T L Helton 8 8 R. Kenseth 8 D. Tavaras 9 8 10 Hours W Jan 31 10 8 8 T F 8 8 8 10 8 9 5 3 3 0 Date Account Titles and Explanation Hourly Rate $10 12 15 Federal Income Tax Withholding $34 37 50 Health Insurance Debit 10 Employees are paid 1% 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). Cullumber Company is subject to 5.4% state unemployment taxes and 0.6% federal unemployment taxes on the first $7,000 of gross earnings $10 Prepare the journal entry to record Cullumber's payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, eg. 15.25) Credit 25 25
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