In January, gross earnings in Lugo Company totaled $64,000. All earnings are subject to 7.65% FICA taxes, 5.6% state unemployment taxes, and 0.8% federal unemployment taxes. Prepare the entry to record January payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)
In January, gross earnings in Lugo Company totaled $64,000. All earnings are subject to 7.65% FICA taxes, 5.6% state unemployment taxes, and 0.8% federal unemployment taxes. Prepare the entry to record January payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
In January, gross earnings in Lugo Company totaled $64,000. All earnings are subject to 7.65% FICA taxes, 5.6% state unemployment taxes, and 0.8% federal unemployment taxes.
Prepare the entry to record January payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)
Prepare the entry to record January payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)
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Debit
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Credit
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| Jan. 31 |
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