During the month of March, Blossom Company's employees earned wages of $83,000. Withholdings related to these wages were $6,350 for FICA, $9,727 for federal income tax, $4,020 for state income tax, and $519 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $908 for state unemployment tax. (a) (b) Prepare a tabular summary to record salaries and wages expense and salaries and wages payable on March 31. Assume that wages earned during March will be paid during April. Prepare a tabular summary to record the company's payroll tax expense. Include margin explanations for changes in revenues and expenses. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Mar. 31 Mar. 31 LA Assets Cash Salaries & Wages Payable Federal Income Taxes Payable + FICA Taxes Pay

During the month of March, Blossom Company's employees earned wages of $83,000. Withholdings related to these wages were $6,350 for FICA, $9,727 for federal income tax, $4,020 for state income tax, and $519 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $908 for state unemployment tax. (a) (b) Prepare a tabular summary to record salaries and wages expense and salaries and wages payable on March 31. Assume that wages earned during March will be paid during April. Prepare a tabular summary to record the company's payroll tax expense. Include margin explanations for changes in revenues and expenses. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Mar. 31 Mar. 31 LA Assets Cash Salaries & Wages Payable Federal Income Taxes Payable + FICA Taxes Pay

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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