Journal Entries for Payment of Employer Payroll TaxesAngel Ruiz owns a business called Ruiz Construction Co. He does his banking at Citizens National Bank in Portland, Oregon. The amounts in his general ledger for payroll taxes and the employees' withholding of Social Security, Medicare, and federal income tax payable as of April 15 of the current year are as follows:Social Security tax payable (includes both employer and employee)$11,250Medicare tax payable (includes both employer and employee)2,625FUTA tax payable700SUTA tax payable3,990Employee income tax payable5,860Journalize the quarterly payment of the employee federal income taxes and Social Security and Medicare taxes on April 15, 20--, and the payments of the FUTA and SUTA taxes on April 30, 20--. Page:DOC. POST.DATEACCOUNT TITLEDEBITCREDITNO.REF.20--1Apr. 1523344Deposit of employee federal income tax and Social Security and Medicare taxes73078.9.Paid FUTA tax101011 3011121213Paid SUTA tax13000LO

Federal income taxes (FIT) are imposed in USA. Tax is calculated by applying tax rates which…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Journal Entries for Payment of Employer Payroll Taxes

Angel Ruiz owns a business called Ruiz Construction Co. He does his banking at Citizens National Bank in Portland, Oregon. The amounts in his general ledger for payroll taxes and the employees' withholding of Social Security, Medicare, and federal income tax payable as of April 15 of the current year are as follows:

Social Security tax payable (includes both employer and employee)	$11,250
Medicare tax payable (includes both employer and employee)	2,625
FUTA tax payable	700
SUTA tax payable	3,990
Employee income tax payable	5,860

Journalize the quarterly payment of the employee federal income taxes and Social Security and Medicare taxes on April 15, 20--, and the payments of the FUTA and SUTA taxes on April 30, 20--.

Page:
DOC. POST.
DATE
ACCOUNT TITLE
DEBIT
CREDIT
NO.
REF.
20--
1
Apr. 15
2
3
3
4
4
Deposit of employee federal income tax and Social Security and Medicare taxes
7
30
7
8.
9.
Paid FUTA tax
10
10
11 30
11
12
12
13
Paid SUTA tax
13
000
LO

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