32During the week ended June 15, Wiley Automotive's employees earned $2,650 of gross wages and had $363 of federal income taxwithheld. All of their employees had already earned over $7,000 of gross wages for the year so none of their wages were subject to FUTA orSUTA tax. However, all of their wages were still subject to Social Security tax of 6.2% and Medicare tax of 1.45%. The journal entry to recordPayroll Tax Expense for the pay period would be:2 OOOOAccount NamePayroll Taxes ExpenseSocial Security Tax PayableMedicare Tax PayableAccount NamePayroll Taxes ExpenseEmployee Income Tax PayableSocial Security Tax PayableMedicare Tax PayableAccount NamePayroll Taxes ExpenseSocial Security Tax PayableMedicare Tax PayableAccount NameSocial Security Tax PayableMedicare Tax PayablePayroll Taxes ExpenseDebit202.73Debit565.73Debit548.55Debit164.3038.43Credit164.3038.43Credit363164.3038.43Credit164.30384.25Credit202.73

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During the week ended June 15, Wiley Automotive's employees earned $2,650 of gross wages and had $363 of federal income tax withheld. All of their employees had already earned over $7,000 of gross wages for the year so none of their wages were subject to FUTA or SUTA tax. However, all of their wages were still subject to Social Security tax of 6.2% and Medicare tax of 1.45% The journal entry to record Payroll Tax Expense for the pay period would be:

During the week ended June 15, Wiley Automotive's employees earned $2,650 of gross wages and had $363 of federal income tax withheld. All of their employees had already earned over $7,000 of gross wages for the year so none of their wages were subject to FUTA or SUTA tax. However, all of their wages were still subject to Social Security tax of 6.2% and Medicare tax of 1.45% The journal entry to record Payroll Tax Expense for the pay period would be:

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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