Employee L. Helton R. Kenseth D. Tavaras M 8 8 T 8 8 Sllowing data for the weekly payroll ending January 31. Hours W 12 8 9 12 8 TFS 8 8 8 10 8 3 5 9 0 Hourly Rate $12 16 13 Federal Income Tax Withholding $34 37 58 Health Ins $10 25 25 Employees are paid 1½ times the regular horly rate for all hours worked in excess of 40 hours per week. FICA taxes are 7.65 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 t 1.45% on all salaries and wages). Sandhill Company is subject to 5.4% state unemployment taxes and 0.6% federal unemploy taxes on the first $7,000 of gross earnings. Prepare the journal entry to record Sandhill's payroll tax expense. (Credit account titles are automatically indented when amoun entered. Do not indent manually. Round answers to 2 decimal places, e.g. 15.25.)
Employee L. Helton R. Kenseth D. Tavaras M 8 8 T 8 8 Sllowing data for the weekly payroll ending January 31. Hours W 12 8 9 12 8 TFS 8 8 8 10 8 3 5 9 0 Hourly Rate $12 16 13 Federal Income Tax Withholding $34 37 58 Health Ins $10 25 25 Employees are paid 1½ times the regular horly rate for all hours worked in excess of 40 hours per week. FICA taxes are 7.65 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 t 1.45% on all salaries and wages). Sandhill Company is subject to 5.4% state unemployment taxes and 0.6% federal unemploy taxes on the first $7,000 of gross earnings. Prepare the journal entry to record Sandhill's payroll tax expense. (Credit account titles are automatically indented when amoun entered. Do not indent manually. Round answers to 2 decimal places, e.g. 15.25.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:Sandhill Company has the following data for the weekly payroll ending January 31.
Employee
L. Helton
R. Kenseth
M
8
8
D. Tavaras 9
Jan. 31
T
8
8
12
Hours
W
12
8
8
T
8
8
8
F
10
8
S
3
Date Account Titles and Explanation
5
9 0
Hourly Rate
$12
16
13
Federal Income Tax Withholding Health Insurance
$34
37
58
Employees are paid 1½ times the regular hcrly 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). Sandhill Company is subject to 5.4% state unemployment taxes and 0.6% federal unemployment
taxes on the first $7,000 of gross earnings.
Debit
$10
Prepare the journal entry to record Sandhill'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.)
25
Credit
25
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