The payroll of Coronado Company for September 2025 is as follows. Total payroll was $434,000, of which $104,000 is exempt from Social Security tax because it represented amounts paid in excess of $142,800 to certain employees. The amount paid to employees in excess of $7.000 (the maximum for both federal and state unemployment taxes) was $363,000. Income taxes in the amount of $72,400 were withheld, as was $9.500 in union dues. The state unemployment tax is 3.5%, but Coronado Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee's wages to $142,800 and 1.45% in excess of $142,800. The federal unemployment tax rate is 0.8% after state credit. Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered: Re not indent manuath List all debit entries before credit entries)

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Chapter1: Financial Statements And Business Decisions
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The payroll of Coronado Company for September 2025 is as follows.
Total payroll was $434,000, of which $104,000 is exempt from Social Security tax because it represented amounts paid in excess of
$142,800 to certain employees. The amount paid to employees in excess of $7.000 (the maximum for both federal and state
unemployment taxes) was $363,000. Income taxes in the amount of $72,400 were withheld, as was $9.500 in union dues. The state
unemployment tax is 3.5%, but Coronado Company is allowed a credit of 2.3% by the state for its unemployment experience. Also,
assume that the current FICA tax is 7.65% on an employee's wages to $142,800 and 1.45% in excess of $142,800. The federal
unemployment tax rate is 0.8% after state credit.
Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately. (If no entry
is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is
entered. Do not indent manually List all debit entries before credit entries.)
Account Titles and Explanation
Salaries and Wages Expense
Withholding Taxes Payable
FICA Taxes Payable
Union Dues Payable
Cash
(To record salaries and wages paid and the employee payroll
deductions)
Payroll Tax Expense
FICA Taxes Payable
FICA Taxes Payable
Withholding Taxes Payable
(To record employer payroll taxes)
7
Debit
434000
28173
Credit
72400
26753
9500
325347
28173
568
852
Transcribed Image Text:The payroll of Coronado Company for September 2025 is as follows. Total payroll was $434,000, of which $104,000 is exempt from Social Security tax because it represented amounts paid in excess of $142,800 to certain employees. The amount paid to employees in excess of $7.000 (the maximum for both federal and state unemployment taxes) was $363,000. Income taxes in the amount of $72,400 were withheld, as was $9.500 in union dues. The state unemployment tax is 3.5%, but Coronado Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee's wages to $142,800 and 1.45% in excess of $142,800. The federal unemployment tax rate is 0.8% after state credit. Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually List all debit entries before credit entries.) Account Titles and Explanation Salaries and Wages Expense Withholding Taxes Payable FICA Taxes Payable Union Dues Payable Cash (To record salaries and wages paid and the employee payroll deductions) Payroll Tax Expense FICA Taxes Payable FICA Taxes Payable Withholding Taxes Payable (To record employer payroll taxes) 7 Debit 434000 28173 Credit 72400 26753 9500 325347 28173 568 852
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