Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,500 each week.Additional tax information includes: FICA tax—OASDI6.2% on first $132,900 FICA tax—HI1.45% on total pay Federal income tax$232.00 per pay State income tax22% of the federal income tax withholding Federal unemployment tax0.6% on first $7,000 State unemployment tax0.05% on first $14,000Additional payroll deductions include: 401(k) plan3% per pay Child support garnishment$100 per pay Health insurance premium$95 per pay Payment of Wages and Payroll TaxesRecord the payroll entry and payroll tax entry for the pay of the week ended June 7 (his year-to-date pay is $31,500).If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.AccountDebitCreditPayment of wagesPayroll taxesII

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

Answered: Kip Bowman is owner and sole employee…

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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Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,500 each week.

*Additional tax information includes:*
	FICA tax—OASDI	6.2% on first $132,900
	FICA tax—HI	1.45% on total pay
	Federal income tax	$232.00 per pay
	State income tax	22% of the federal income tax withholding
	Federal unemployment tax	0.6% on first $7,000
	State unemployment tax	0.05% on first $14,000
*Additional payroll deductions include:*
	401(k) plan	3% per pay
	Child support garnishment	$100 per pay
	Health insurance premium	$95 per pay

Payment of Wages and Payroll Taxes
Record the payroll entry and payroll tax entry for the pay of the week ended June 7 (his year-to-date pay is $31,500).
If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
Account
Debit
Credit
Payment of wages
Payroll taxes
II

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