[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 September $ 800 $ 6,400 2,000 131,400 2,100 8,000 Assuming situation (a), prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related liabilities.
[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 September $ 800 $ 6,400 2,000 131,400 2,100 8,000 Assuming situation (a), prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related liabilities.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $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.
Gross Pay through Gross Pay for
August 31
September
$ 800
$ 6,400
2,000
131,400
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
Expense
General
Journal
2,100
8,000
Prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related liabilities. (Round your
answers to 2 decimal places.)
View transaction list
< 1
Journal entry worksheet
Record the em yer': eptember 30 payroll taxes expense and its related
liabilities.
Note: Enter debits before credits.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4c31f947-5848-48a2-943b-5d3c9bff6f43%2F95e72a0f-07d1-4836-863f-22724e474d86%2F36rzppk_processed.png&w=3840&q=75)
Transcribed Image Text: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 $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.
Gross Pay through Gross Pay for
August 31
September
$ 800
$ 6,400
2,000
131,400
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
Expense
General
Journal
2,100
8,000
Prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related liabilities. (Round your
answers to 2 decimal places.)
View transaction list
< 1
Journal entry worksheet
Record the em yer': eptember 30 payroll taxes expense and its related
liabilities.
Note: Enter debits before credits.
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