The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be:   Debit Credit Wages Expense 24,762.70   FICA Taxes Payable—OASDI   1,535.29 FICA Taxes Payable—HI   359.06 FIT Payable   3,714.00 SIT Payable   55.25 Group Insurance Payments W/H   54.70 Cash   19,044.40 Example 6-7 The journal entry to record the payroll tax entry from Figure 6.1 on pages 6-2 and 6-3 would be (assume a SUTA tax rate of 3.0%):   Debit Credit Payroll Taxes 2,785.81   FICA Taxes Payable—OASDI   1,535.29 FICA Taxes Payable—HI   359.06 FUTA Taxes Payable   148.58 SUTA Taxes Payable   742.88 Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,500 each week. Additional tax information includes:     FICA tax—OASDI 6.2% on first $132,900   FICA tax—HI 1.45% on total pay   Federal income tax $232.00 per pay   State income tax 22% of the federal income tax withholding   Federal unemployment tax 0.6% on first $7,000   State unemployment tax 0.05% on first $14,000 Additional payroll deductions include:     401(k) plan 3% per pay   Child support garnishment $100 per pay   Health insurance premium $95 per pay Record the payroll entry and payroll tax entry for the pay of the week ended June 7 (his year-to-date pay is $31,500). If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.   Account Debit Credit Payment of wages                                                                                   Payroll taxes

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Example 6-5

The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be:

  Debit Credit
Wages Expense 24,762.70  
FICA Taxes Payable—OASDI   1,535.29
FICA Taxes Payable—HI   359.06
FIT Payable   3,714.00
SIT Payable   55.25
Group Insurance Payments W/H   54.70
Cash   19,044.40

Example 6-7

The journal entry to record the payroll tax entry from Figure 6.1 on pages 6-2 and 6-3 would be (assume a SUTA tax rate of 3.0%):

  Debit Credit
Payroll Taxes 2,785.81  
FICA Taxes Payable—OASDI   1,535.29
FICA Taxes Payable—HI   359.06
FUTA Taxes Payable   148.58
SUTA Taxes Payable   742.88

Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,500 each week.

Additional tax information includes:  
  FICA tax—OASDI 6.2% on first $132,900
  FICA tax—HI 1.45% on total pay
  Federal income tax $232.00 per pay
  State income tax 22% of the federal income tax withholding
  Federal unemployment tax 0.6% on first $7,000
  State unemployment tax 0.05% on first $14,000
Additional payroll deductions include:  
  401(k) plan 3% per pay
  Child support garnishment $100 per pay
  Health insurance premium $95 per pay

Record the payroll entry and payroll tax entry for the pay of the week ended June 7 (his year-to-date pay is $31,500).

If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.

  Account Debit Credit
Payment of wages      
       
       
       
       
       
       
       
       
           
Payroll taxes      
       
       
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