The payroll of Sweet 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 Sweet 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 FICA Taxes Payable FUTA Taxes Payable SUTA Taxes Payable Cash (To record salaries and wages paid and the employee payroll deductions) Payroll Tax Expense FICA Taxes Payable FUTA Taxes Payable SUTA Taxes Payable Debit 434000 000 Credit 72400 9500 SUPPOR
The payroll of Sweet 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 Sweet 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 FICA Taxes Payable FUTA Taxes Payable SUTA Taxes Payable Cash (To record salaries and wages paid and the employee payroll deductions) Payroll Tax Expense FICA Taxes Payable FUTA Taxes Payable SUTA Taxes Payable Debit 434000 000 Credit 72400 9500 SUPPOR
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The payroll of Sweet 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 Sweet 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
FICA Taxes Payable
FUTA Taxes Payable
SUTA Taxes Payable
Cash
(To record salaries and wages paid and the employee payroll deductions)
Payroll Tax Expense
FICA Taxes Payable
FUTA Taxes Payable
SUTA Taxes Payable
Debit
434000
ULO CO
Credit
72400
9500
SUPPOR
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