K Felipe's Mexican Restaurant incurred salaries expense of $70,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $23,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,000), life insurance (cost to the company, $400), and retirement benefits (cost to the company, 8% of salaries expense). (Click the icon to view payroll tax rate information.) Read the requirements. 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. Date Print Done 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.) Accounts Payroll Tax Expense FICA-OASDI Taxes Payable FICA-Medicare Taxes Payable Federal Unemployment Taxes Payable State Unemployment Taxes Payable Debit Credit 434000 101500 13.80 1,24200
K Felipe's Mexican Restaurant incurred salaries expense of $70,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $23,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,000), life insurance (cost to the company, $400), and retirement benefits (cost to the company, 8% of salaries expense). (Click the icon to view payroll tax rate information.) Read the requirements. 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. Date Print Done 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.) Accounts Payroll Tax Expense FICA-OASDI Taxes Payable FICA-Medicare Taxes Payable Federal Unemployment Taxes Payable State Unemployment Taxes Payable Debit Credit 434000 101500 13.80 1,24200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:K
Felipe's Mexican Restaurant incurred salaries expense of $70,000 for 2024. The payroll expense includes employer
FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $23,000 is
subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost
to the company, $2,000), life insurance (cost to the company, $400), and retirement benefits (cost to the company.
8% of salaries expense).
i (Click the icon to view payroll tax rate information.)
Read the requirements.
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.
Date
Print
Done
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.)
Accounts
Payroll Tax Expense
FICA-OASDI Taxes Payable
FICA-Medicare Taxes Payable
Federal Unemployment Taxes Payable
State Unemployment Taxes Payable
Debit
Credit
434000
101500
13.80
1,24200
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