**Required Information**Use the following information for the Exercises below. (Algo)[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 its SUTA taxes are 5.4% of the first $7,000 paid to its employee.| | August 31 Gross Pay | September Gross Pay ||-------|---------------------|---------------------|| a. | $5,100 | $2,200 || b. | 2,600 | 2,700 || c. | 132,000 | 8,600 |**Exercise 9-8 (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 the employee. The employer’s federal income taxes withheld by the employer are $90, and its year-end FICA and unemployment taxes payable follow: FICA—Social Security, $154.00; FICA—Medicare, $37.10; Federal Unemployment, $13.20; State unemployment, $118.80.This task involves recording the necessary payroll-related journal entries for BMX Company based on the provided tax rates and gross pay scenarios. **Transcription for Educational Website:**---**Assignment: Accounting for Current Liabilities****Required Information:**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 $80 for this pay period.**Task:**Complete this question by entering your answers in the tabs below.- **Taxes to be Withheld From Gross Pay**- **General Journal**The employee’s federal income taxes withheld by the employer are $80 for this pay period. Assuming situation (a), compute the taxes to be withheld from gross pay for this employee. (Round your answers to 2 decimal places.)**Table: Taxes to be Withheld From Gross Pay (Employee-Paid Taxes)**| Description | Earnings Subject to Tax | Tax Rate | Tax Amount ||------------------------|-------------------------|----------|------------|| Federal income tax | | | $80.00 |**Navigation:**- Previous: 6 of 9- Next--- *Note: There are no graphs or diagrams present in this section.*

The amount used to compute an employee's earnings (hourly) or salary is referred to as gross pay (for the salaried employee). It is the total amount of remuneration before taxes and other deductions such as Medicare, social security, insurance, and pension and charity contributions are deducted. Taxes to be Withheld From Gross Pay (Employee-Paid Taxes) September Earnings Subject to Tax Tax Rate Tax Amount Federal income tax 80.00 FICA—Social Security 2,200 6.2% 136.40 FICA—Medicare 2,200 1.45% 31.90 Total taxes withheld 248.30 Journal Entry: Date Particulars Debit Credit Sep 30 Salaries expense 2,200.00 FICA—Social Security taxes payable 136.40 FICA—Medicare taxes payable 31.90 Employee federal income taxes payable 80.00 Salaries payable (Balancing fig) 1,951.70

Business

Accounting

Required information Use the following information for the Exercises below. (Algo) [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. Gross Pay through August 31 $ 5,100 2,600 132,000 Gross Pay for September $ 2,200 2,700 8,600 a. b. с.

Required information Use the following information for the Exercises below. (Algo) [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. Gross Pay through August 31 $ 5,100 2,600 132,000 Gross Pay for September $ 2,200 2,700 8,600 a. b. с.

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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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.
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Required information Use the following information for the Exercises below. (Algo) [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 Gross Pay through August 31 $ 5,700 3,200 132,600 Gross Pay for September $1,800 3,300 9,200 Exercise 9-9 (Algo) Payroll-related journal entries LO P3 Assuming situation (a), prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related liabilities. Complete this question by entering your answers in the tabs below. Payroll Taxes General Expense Journal Assuming situation (a), compute the payroll taxes expense. Note: Round your answers to 2 decimal places.
Tio Tom's Dive Shop has 6 employees who each make $12,500 for the first quarter. Total quarterly federal income tax withheld from wages = $6,900. What should line 6 be on the first quarter Form 941 for Tio Tom's Dive Shop? (All wages are taxable for OASDI, HI and federal income tax).
Total Cost of Empleyee R.D. Kagen employs Audrey Lopez at a salary of $33,800 a year. Kagen is subject to employer Social Security taxes at a rate of 6.2% and Medicare taxes at a rate of 1.45% on Lopez's salary. In addition, Kegen must pey SUTA tax et a rate of 5.4% and FUTA tax at a rate of 0.0% on the first $7,000 uf Lopez's salary. Compute the total cost to Kagen of emplaying Lopez for the year.
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 $ 6,700 2,300 131,700 Exercise 9-8 (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 this employee. The employee's federal income taxes withheld by the employer are $90 for this pay period. Complete this question by entering your answers in the tabs below. Taxes to be Withheld From Gross Pay Gross Pay for September $ 400 2,400 8,300 General Journal The employee's federal income taxes withheld by the employer are $90 for this pay period. Assuming situation (a), compute the taxes to be withheld from gross pay for this employee. (Round your answers to 2 decimal places.)…
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Required information Use the following information for the Exercises below. (Algo) Skip to question [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. Gross Pay through August 31 Gross Pay for September a. $ 6,400 $ 1,700 b. 2,700 2,800 c. 133,300 9,900 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 $60 for this pay period.