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Juan's Mexican Restaurant incurred salaries expense of $62,000 for 2016. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $18,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company. $3,000), life insurance (cost to the company, $400), and retirement benefits (cost to the company. 10% of salaries expense). Journalize Juan's expenses for employee benefits and for payroll taxes. Explanations are not required. (Round all amounts to the nearest cent. Record debits first, then credits. Exclude explanations from journal entries.) (Click the icon to view payroll tax rate information.)

Juan's Mexican Restaurant incurred salaries expense of $62,000 for 2016. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $18,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company. $3,000), life insurance (cost to the company, $400), and retirement benefits (cost to the company. 10% of salaries expense). Journalize Juan's expenses for employee benefits and for payroll taxes. Explanations are not required. (Round all amounts to the nearest cent. Record debits first, then credits. Exclude explanations from journal entries.) (Click the icon to view payroll tax rate information.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Juan's Mexican Restaurant incurred salaries expense of $62,000 for 2016. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $18,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company. $3,000), life insurance (cost to the company, $400), and retirement benefits (cost to the company, 10% of salaries expense). Journalize Juan's expenses for employee benefits and for payroll taxes. Explanations are not required. (Round all amounts to the nearest cent. Record debits first, then credits. Exclude explanations from journal entries.) (Click the icon to view payroll tax rate information.) Begin with the entry to accrue Juan's employer payroll taxes. Date Accounts and Explanation Payroll Tax Expense FICA-OASDI Taxes Payable FICA-Medicare Taxes Payable Federal Unemployment Taxes Payable State Unemployment Taxes Payable Now record the accrual of Juan's employee benefit expenses. Date Accounts and Explanation Employee Benefits Expense Employee Health Insurance Payable Employee Life Insurance Payable Employee Retirement Benefits Payable Debit Credit Debit Credit
Transcribed Image Text:Juan's Mexican Restaurant incurred salaries expense of $62,000 for 2016. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $18,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company. $3,000), life insurance (cost to the company, $400), and retirement benefits (cost to the company, 10% of salaries expense). Journalize Juan's expenses for employee benefits and for payroll taxes. Explanations are not required. (Round all amounts to the nearest cent. Record debits first, then credits. Exclude explanations from journal entries.) (Click the icon to view payroll tax rate information.) Begin with the entry to accrue Juan's employer payroll taxes. Date Accounts and Explanation Payroll Tax Expense FICA-OASDI Taxes Payable FICA-Medicare Taxes Payable Federal Unemployment Taxes Payable State Unemployment Taxes Payable Now record the accrual of Juan's employee benefit expenses. Date Accounts and Explanation Employee Benefits Expense Employee Health Insurance Payable Employee Life Insurance Payable Employee Retirement Benefits Payable Debit Credit Debit Credit
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