Logan White is general manager of National Salons. During 2024, White worked for the company all year at a $14,200 monthly salary. He also earned a year-end bonus equal to 5% of his annual salary. White's federal income tax withheld during 2024 was $1,420 per month, plus $2,726 on his bonus check. State income tax withheld came to $90 per month, plus $80 on the bonus. FICA tax was withheld on the annual earnings. White authorized the following payroll deductions: Charity Fund contribution of 3% of total earnings and life insurance of $25 per month. National incurred payroll tax expense on White for FICA lax. The Compan also paid state unemployment tax and federal unemployment tax. (Click the icon to view payroll tax rate information.) Read the requirements CO State Unemployment Taxes Payable 378 Requirement 5. Make the journal entry for the payment of the payroll withholdings and taxes. (Record debits first, then credits. Exclude explanations from joumal entries.) Date Accounts Employee Federal Income Taxes Payable Employee State Income Taxes Payable Debit Credit 19,766 1,160 FICA-Medicare Taxes Payable FICA-OASDI Taxes Payable Charity Fund Payable Life Insurance Payable Federal Unemployment Taxes Payable State Unemployment Taxes Payable Cash 5,368 300 42 378
Logan White is general manager of National Salons. During 2024, White worked for the company all year at a $14,200 monthly salary. He also earned a year-end bonus equal to 5% of his annual salary. White's federal income tax withheld during 2024 was $1,420 per month, plus $2,726 on his bonus check. State income tax withheld came to $90 per month, plus $80 on the bonus. FICA tax was withheld on the annual earnings. White authorized the following payroll deductions: Charity Fund contribution of 3% of total earnings and life insurance of $25 per month. National incurred payroll tax expense on White for FICA lax. The Compan also paid state unemployment tax and federal unemployment tax. (Click the icon to view payroll tax rate information.) Read the requirements CO State Unemployment Taxes Payable 378 Requirement 5. Make the journal entry for the payment of the payroll withholdings and taxes. (Record debits first, then credits. Exclude explanations from joumal entries.) Date Accounts Employee Federal Income Taxes Payable Employee State Income Taxes Payable Debit Credit 19,766 1,160 FICA-Medicare Taxes Payable FICA-OASDI Taxes Payable Charity Fund Payable Life Insurance Payable Federal Unemployment Taxes Payable State Unemployment Taxes Payable Cash 5,368 300 42 378
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:More info
For all payroll calculations, use the following tax rates and round amounts to the
nearest cent:
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; Medicare: 1.45%; FUTA:
0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned.
Employee:
Employer:
es
Print
Done
ble
Transcribed Image Text:National incurred payroll tax expense on White for FICA tax. The company
also paid state unemployment tax and federal unemployment tax.
O (Click the icon to view payroll tax rate information.)
Logan White is general manager of National Salons. During 2024, White worked
for the company all year at a $14,200 monthly salary. He also earmed a year-end
bonus equal to 5% of his annual salary. White's federal income tax withheld during
2024 was $1,420 per month, plus $2,726 on his bonus check. State income tax
withheld came to $90 per month, plus $80 on the bonus. FICA tax was withheld on
the annual earnings. White authorized the following payroll deductions: Charity
Fund contribution of 3% of total earnings and life insurance of $25 per month.
Read the reauirermenta.
378
Stato Unemployment Taxos Payablo
Requirement 5. Make the journal entry for the payment of the payroll withholdings and taxes. (Record debits first, then credits. Exclude explanations from joumal
entries.)
Debit
Credit
Date
Accounts
Employee Federal Income Taxes Payable
19,766
Employee State Income Taxes Payable
1,160
FICA-Medicare Taxos Payable
FICA-OASDI Taxes Payable
Charity Fund Payable
5,368
Life Insurance Payable
300
Federal Unemployment Taxes Payable
42
State Unemployment Taxes Payable
378
Cash
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