Required information[The following information applies to the questions displayed below]BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128.400 paid to its employee, andFICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000paid to its employee.Gross Pay forSeptember$800Gross Pay throughAugust 316,4002,000122,100a.2,1008,000b.C.Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of threeseparate situations (a), (b), and (). (Round your answers to 2 decimal places.)a)September EarningsSubject to Tax800.00ТaxTax RateTax AmountesFICA-Social Security6.20%49.60FICA-Medicare800.001.45%11.60FUTA0.60%SUTAb)September EarningsSubject to TaxТaxTax RateTax AmountFICA-Social Security$42,100.006.20%2$130.20FICA-Medicare2,100.001.45%30.45FUTASUTAc)Sentember Farninge Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for Septemseparate situations (a), (b), and (c). (Round your answers to 2 decimal places.)a)September EarningsSubject to TaxТаx RateТаx AmountTax6.20%$49.60800.00FICA -Social Security11.60800.001.45%FICA-Medicare0.60%FUTASUTAb)September EarningsSubject to Tax2,100.00Tax RateTax AmountTax6.20%130.20FICA-Social Security241.45%30.45FICA-Medicare2,100.00FUTAESSUTASeptember EarningsSubject to TaxTax RateTax AmountТаxFICA-Social SecurityFICA-Medicare8,000.00145%116.00FUTASUTA%24%24

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Required information [The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Gross Pay for September Gross Pay through August 31 6, 400 2,000 a. 800 2,100 8,000 b. C. 122,100 Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three separate situations (a), (b), and (9. (Round your answers to 2 decimal places.) a) September Earnings Tax Amount

Required information [The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Gross Pay for September Gross Pay through August 31 6, 400 2,000 a. 800 2,100 8,000 b. C. 122,100 Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three separate situations (a), (b), and (9. (Round your answers to 2 decimal places.) a) September Earnings Tax Amount

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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[The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. a. b. C. Gross Pay through Gross Pay for August 31 $ 5,700 3,200 132,600 Exercise 11-8 (Algo) Payroll-related journal entries LO P2 Assuming situation (a), prepare the employer's September 30 journal entry to record salary expense and its related payroll liabilities for this employee. The employee's federal income taxes withheld by the employer are $70 for this pay period. Taxes to be Withheld From Gross Pay September $ 1,800 Complete this question by entering your answers in the tabs below. 3,300 9,200 General Journal Federal income tax The employee's federal income taxes withheld by the employer are $70 for this pay period. Assuming situation (a), compute the…
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BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. b. C. Gross Pay through August 31 $ 6,300 2,600 133,200 No Assuming situation (a), prepare the employer's September 30 journal entry to record salary expense and its related payroll liabilities for this employee. The employee's federal income taxes withheld by the employer are $90 for this pay period. Taxes to be Withheld From Gross Pay 1 Complete this question by entering your answers in the tabs below. General Journal Gross Pay for September $ 1,800 2,700 9,800 Assuming situation (a), prepare the employer's September 30 journal entry to record salary expense and its related payroll liabilities for this employee. The employee's federal income taxes withheld by the employer are $90 for this pay period. Note: Round your answers to 2…
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