During the month of February, Ivanhoe Corporation's employees earned wages of $73,700. Withholdings related to these wages were $5,638 for FICA, $7,070 for federal income tax, and $1,800 for state income tax. Costs incurred for unemployment taxes were $130 for federal and $180 for state.
During the month of February, Ivanhoe Corporation's employees earned wages of $73,700. Withholdings related to these wages were $5,638 for FICA, $7,070 for federal income tax, and $1,800 for state income tax. Costs incurred for unemployment taxes were $130 for federal and $180 for state.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:During the month of February, Ivanhoe Corporation's employees earned wages of $73,700. Withholdings related to these wages were
$5,638 for FICA, $7,070 for federal income tax, and $1,800 for state income tax. Costs incurred for unemployment taxes were $130
for federal and $180 for state.
(a)
Prepare the February 28 journal entry for salaries and wages expense and salaries and wages payable assuming that all February
wages will be paid in March. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entry
is required, select "No Entry" for the account titles and enter O for the amounts.)
Date Account Titles and Explanation
Feb. 28
Debit
Credit
(b)
(To record February 28 payroll)
Prepare the February 28 journal entry for the company's payroll tax expense. (Credit account titles are automatically indented when the
amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Date Account Titles and Explanation
Feb. 28
(To record employer's payroll taxes)
eTextbook and Media
List of Accounts
Debit
Credit
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