Felipe's Mexican Restaurant incurred salaries expense of $59,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $16,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,400), life insurance (cost to the company, $400), and retirement benefits (cost to the company, 5% of salaries expense). (Click the icon to view payroll tax rate information.) - X More info - X Requirements For all payroll calculations, use the following tax rates and round amounts to the nearest cent: 1. Journalize Felipe's expenses for employee benefits and for payroll taxes. Explanations are not required. Employee: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. 2. What was Felipe's total expense for 2024 related to payroll? Employer: OASDI: 6.2% on first $132,900 earned per employee; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned per employee; SUTA: 5.4% on first $7,000 earned per employee. Print Done Print Done
Felipe's Mexican Restaurant incurred salaries expense of $59,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $16,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,400), life insurance (cost to the company, $400), and retirement benefits (cost to the company, 5% of salaries expense). (Click the icon to view payroll tax rate information.) - X More info - X Requirements For all payroll calculations, use the following tax rates and round amounts to the nearest cent: 1. Journalize Felipe's expenses for employee benefits and for payroll taxes. Explanations are not required. Employee: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. 2. What was Felipe's total expense for 2024 related to payroll? Employer: OASDI: 6.2% on first $132,900 earned per employee; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned per employee; SUTA: 5.4% on first $7,000 earned per employee. Print Done Print Done
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Felipe's Mexican Restaurant incurred salaries expense of $59,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries,
$16,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,400), life insurance (cost to the company, $400), and retirement
benefits (cost to the company, 5% of salaries expense).
A (Click the icon to view payroll tax rate information.)
More info
Requirements
For all payroll calculations, use the following tax rates and round amounts to the
nearest cent:
1. Journalize Felipe's expenses for employee benefits and for payroll taxes.
Explanations are not required.
Employee:
OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to
$200,000, 2.35% on earnings above $200,000.
2. What was Felipe's total expense for 2024 related to payroll?
Employer:
OASDI: 6.2% on first $132,900 earned per employee; Medicare:
1.45%; FUTA: 0.6% on first $7,000 earned per employee; SUTA:
5.4% on first $7,000 earned per employee.
Print
Done
Print
Done](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9eede826-bc7e-4b9c-8b92-5bd0f3e6e060%2Fd080b022-b5fc-46e8-af12-d1e41f8860be%2Fzuekqle_processed.png&w=3840&q=75)
Transcribed Image Text:Felipe's Mexican Restaurant incurred salaries expense of $59,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries,
$16,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,400), life insurance (cost to the company, $400), and retirement
benefits (cost to the company, 5% of salaries expense).
A (Click the icon to view payroll tax rate information.)
More info
Requirements
For all payroll calculations, use the following tax rates and round amounts to the
nearest cent:
1. Journalize Felipe's expenses for employee benefits and for payroll taxes.
Explanations are not required.
Employee:
OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to
$200,000, 2.35% on earnings above $200,000.
2. What was Felipe's total expense for 2024 related to payroll?
Employer:
OASDI: 6.2% on first $132,900 earned per employee; Medicare:
1.45%; FUTA: 0.6% on first $7,000 earned per employee; SUTA:
5.4% on first $7,000 earned per employee.
Print
Done
Print
Done
![Requirement 1. Journalize Felipe's expenses for employee benefits and for payroll taxes. Explanations are not required.
Begin with the entry to accrue Felipe's employer payroll taxes. (Round all amounts to the nearest cent. Record debits first, then credits. Exclude explanations from journal entries.)
Date
Accounts
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9eede826-bc7e-4b9c-8b92-5bd0f3e6e060%2Fd080b022-b5fc-46e8-af12-d1e41f8860be%2Fd8j19oo_processed.png&w=3840&q=75)
Transcribed Image Text:Requirement 1. Journalize Felipe's expenses for employee benefits and for payroll taxes. Explanations are not required.
Begin with the entry to accrue Felipe's employer payroll taxes. (Round all amounts to the nearest cent. Record debits first, then credits. Exclude explanations from journal entries.)
Date
Accounts
Debit
Credit
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