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.)
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter9: Payroll Accounting: Employer Taxes And Reports
Section: Chapter Questions
Problem 1CP
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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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff80aeccd-46c6-4f91-9235-811292acb574%2F5f7790af-003d-4656-a01f-089224b90b0e%2Fqw41h1_processed.jpeg&w=3840&q=75)
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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