Portions of the payroll register for Barney's Bagels for the week ended July 15 are shown below. The SUTA tax rate is 5.4%, and the FUTA tax rate is 0.6%, both of which are levied on the first $7,000 of earnings. The Social Security tax rate is 6.2% on the first $128,400 of earnings. The Medicare rate is 1.45% on gross earnings. Barney's Bagels Payroll Register Total Taxable Earnings of All Employees Total Earnings Unemployment Compensation Social Security $13,600 $10,500 $13,600 1. Calculate the employer's payroll taxes expense. 2. Prepare the journal entry to record the employer's payroll taxes expense for the week ended July 15 of the current year. Page: DOC. POST. DATE ACCOUNT TITLE DEBIT CREDIT NO. REF. 20-- 1 July 15 3 3 4 4 5

Portions of the payroll register for Barney's Bagels for the week ended July 15 are shown below. The SUTA tax rate is 5.4%, and the FUTA tax rate is 0.6%, both of which are levied on the first $7,000 of earnings. The Social Security tax rate is 6.2% on the first $128,400 of earnings. The Medicare rate is 1.45% on gross earnings. Barney's Bagels Payroll Register Total Taxable Earnings of All Employees Total Earnings Unemployment Compensation Social Security $13,600 $10,500 $13,600 1. Calculate the employer's payroll taxes expense. 2. Prepare the journal entry to record the employer's payroll taxes expense for the week ended July 15 of the current year. Page: DOC. POST. DATE ACCOUNT TITLE DEBIT CREDIT NO. REF. 20-- 1 July 15 3 3 4 4 5

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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