Felipe's Mexican Restaurant incurred salaries expense of $60,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $19,000 is subject to unemployme provides the following benefits for employees: health insurance (cost to the company, $2,900), life insurance (cost to the company, $390), and retirement benefits (cost to the company, 8% of salaries expense). i (Click the icon to view payroll tax rate information.) Read the requirements. 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 Credit Now record the accrual of Felipe's employee benefit expenses. Date Accounts Debit Debit Credit Requirement 2. What was Felipe's total expense for 2024 related to payroll? Select the labels associated with total payroll expense, and then enter in the corresponding amounts. (Round all amounts to the nearest cent. If More info For all payroll calculations, use the following tax rates and round amounts to the nearest cent Employee: Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. 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 X
Felipe's Mexican Restaurant incurred salaries expense of $60,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $19,000 is subject to unemployme provides the following benefits for employees: health insurance (cost to the company, $2,900), life insurance (cost to the company, $390), and retirement benefits (cost to the company, 8% of salaries expense). i (Click the icon to view payroll tax rate information.) Read the requirements. 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 Credit Now record the accrual of Felipe's employee benefit expenses. Date Accounts Debit Debit Credit Requirement 2. What was Felipe's total expense for 2024 related to payroll? Select the labels associated with total payroll expense, and then enter in the corresponding amounts. (Round all amounts to the nearest cent. If More info For all payroll calculations, use the following tax rates and round amounts to the nearest cent Employee: Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. 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 X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Felipe's Mexican Restaurant incurred salaries expense of $60,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $19,000 is subject to unemployment tax. A
provides the following benefits for employees: health insurance (cost to the company, $2,900), life insurance (cost to the company, $390), and retirement benefits (cost to the company, 8% of salaries expense).
i (Click the icon to view payroll tax rate information.)
Read the requirements.
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
Now record the accrual of Felipe's employee benefit expenses.
Date
Accounts
Debit
C
Credit
Requirement 2. What was Felipe's total expense for 2024 related to payroll?
Select the labels associated with total payroll expense, and then enter in the corresponding amounts. (Round all amounts to the nearest cent. If
More info
For all payroll calculations, use the following tax rates and round amounts to the
nearest cent:
Employee:
Employer:
OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to
$200,000, 2.35% on earnings above $200,000.
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
X
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