Kinsella Inc. has a gross payroll of $13,500 for the pay period. The entire payroll is subject to Social Security and Medicare taxes. Kinsella must also withhold $1,750 in income taxes from the employees and pay state unemployment taxes of $60. Assume employees pay 6.2% to Social Security. Required: Hide Prepare the necessary journal entries for Kinsella to record both the gross pay earned by employees and the employer portion of these payroll taxes. If an amount box does not require an entry, leave it blank. If required, round amounts to the nearest dollar. (Record wages and liabilities) (Record employer payroll taxes)

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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Kinsella Inc. has a gross payroll of $13,500 for the pay period. The entire payroll is subject to Social Security and Medicare taxes. Kinsella must also withhold $1,750 in income taxes from the employees and pay state unemployment taxes of $60. Assume employees pay 6.2% to Social Security.

Required:

Hide

Prepare the necessary journal entries for Kinsella to record both the gross pay earned by employees and the employer portion of these payroll taxes. If an amount box does not require an entry, leave it blank. If required, round amounts to the nearest dollar.

(Record wages and liabilities)

(Record employer payroll taxes)

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