The payroll of Sandhill Company for September 2019 is as follows. Total payroll was $508,000, of which $104,000 is exempt from Social Security tax because it represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 (the maximum for both federal and state unemployment tax) was $365,000. Income taxes in the amount of $77,300 were withheld, as was $9,900 in union dues. The state unemployment tax is 3.5%, but Sandhill 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 $128,400 and 1.45% in excess of $128,400. No employee for Sandhill makes more than $135,000. 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. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts Account Titles and Explanation Debit Credit enter an account title to record wages and salaries paid enter a debit amount enter a credit amount enter an account title to record wages and salaries paid enter a debit amount enter a credit amount enter an account title to record wages and salaries paid enter a debit amount enter a credit amount enter an account title to record wages and salaries paid enter a debit amount enter a credit amount enter an account title to record wages and salaries paid enter a debit amount enter a credit amount (To record wages and salaries paid) enter an account title to record employer payroll taxes enter a debit amount enter a credit amount enter an account title to record employer payroll taxes enter a debit amount enter a credit amount enter an account title to record employer payroll taxes enter a debit amount enter a credit amount enter an account title to record employer payroll taxes enter a debit amount enter a credit amount (To record employer payroll taxes)

The payroll of Sandhill Company for September 2019 is as follows. Total payroll was $508,000, of which $104,000 is exempt from Social Security tax because it represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 (the maximum for both federal and state unemployment tax) was $365,000. Income taxes in the amount of $77,300 were withheld, as was $9,900 in union dues. The state unemployment tax is 3.5%, but Sandhill 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 $128,400 and 1.45% in excess of $128,400. No employee for Sandhill makes more than $135,000. 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. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts Account Titles and Explanation Debit Credit enter an account title to record wages and salaries paid enter a debit amount enter a credit amount enter an account title to record wages and salaries paid enter a debit amount enter a credit amount enter an account title to record wages and salaries paid enter a debit amount enter a credit amount enter an account title to record wages and salaries paid enter a debit amount enter a credit amount enter an account title to record wages and salaries paid enter a debit amount enter a credit amount (To record wages and salaries paid) enter an account title to record employer payroll taxes enter a debit amount enter a credit amount enter an account title to record employer payroll taxes enter a debit amount enter a credit amount enter an account title to record employer payroll taxes enter a debit amount enter a credit amount enter an account title to record employer payroll taxes enter a debit amount enter a credit amount (To record employer payroll taxes)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Account Titles and Explanation	Debit	Credit
enter an account title to record wages and salaries paid	enter a debit amount	enter a credit amount
enter an account title to record wages and salaries paid	enter a debit amount	enter a credit amount
enter an account title to record wages and salaries paid	enter a debit amount	enter a credit amount
enter an account title to record wages and salaries paid	enter a debit amount	enter a credit amount
enter an account title to record wages and salaries paid	enter a debit amount	enter a credit amount
(To record wages and salaries paid)
enter an account title to record employer payroll taxes	enter a debit amount	enter a credit amount
enter an account title to record employer payroll taxes	enter a debit amount	enter a credit amount
enter an account title to record employer payroll taxes	enter a debit amount	enter a credit amount
enter an account title to record employer payroll taxes	enter a debit amount	enter a credit amount
(To record employer payroll taxes)