Ricardo's Mexican Restaurant incurred salaries expense of $67,000 for 2016. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $19,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,600), life insurance (cost to the company, $390), and retirement benefits (cost to the company, 7% of salaries expense). Journalize Ricardo's expenses for employee benefits and for payroll taxes. Explanations are not required. (Round all amounts to the nearest cent. Record debits first, then credits Exclude explanations from journal entries.) (Click the icon to view payroll tax rate information.) Begin with the entry to accrue Ricardo's employer payroll taxes. Date Accounts and Explanation Debit Credit

Ricardo's Mexican Restaurant incurred salaries expense of $67,000 for 2016. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $19,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,600), life insurance (cost to the company, $390), and retirement benefits (cost to the company, 7% of salaries expense). Journalize Ricardo's expenses for employee benefits and for payroll taxes. Explanations are not required. (Round all amounts to the nearest cent. Record debits first, then credits Exclude explanations from journal entries.) (Click the icon to view payroll tax rate information.) Begin with the entry to accrue Ricardo's employer payroll taxes. Date Accounts and Explanation Debit Credit

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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An employee earned $62,500 during the year working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. What is the amount of total unemployment taxes the employee must pay? $0.00 $56.00 O $434.00 O $378.00 $101.50
Diego's Mexican Restaurant incurred salaries expense of $58,000 for 2018. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $23,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,100), life insurance (cost to the company, $310), and retirement benefits (cost to the company, 6% of salaries expense). Requirements: 1. Journalize Diego's expenses for employee benefits and for payroll taxes. Explanations are not required. ( I'm stuck on the last two numbers) 2. What was Diego's total expense for 2018 related to payroll? Finished work: First Account Box: FICA tax payable = 58000 * 6.2% = 3596 FICA - medicare taxes payable = 58000 * 1.45% = 841 Federal unemployment taxes = 23000 * 0.6% = 138 State unemployment taxes = 23000 * 5.4% = 1242 Payroll tax expenses =…
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