Toren Inc. employs one person to run its solar management company. The employee's gross income for the month of May is $7,600. Payroll for the month of May is as follows: FICA Social Security tax rate at 6.2%, FICA Medicare tax rate at 1.45%,federal income tax of $440, state income tax of $85, health-care insurance premium of $250, and union dues of $50. The employee is responsible for covering 30% of his or her health insurance premium.A. Record the journal entry to recognize employee payroll for the month of May, dated May 31, 2017. Round your answers to the nearest whole dollar. If an amount box does not require an entry, leave it blank.May 31B. Record remittance of the employee's salary with cash on June 1. Round your answers to the nearest whole dollar. If an amount box does not require an entry, leave it blank.June 1

Payroll taxes are referred to those taxes which apply to the payroll expense of the company out of which some part is deducted from the employee's salary while some part is contributed by the employer.A. Journal entry to recognize employee payroll for the month of May, dated May 31, 2017: Date Account title and explanation Debit Credit May 31 Salaries and wages expense $7,600 FICA Social security tax payable ($7,600 x 6.2%) $471 FICA Medicare tax payable ($7,600 x 1.45%) $110 Federal Income tax payable $440 State income tax payable $85 Healthcare insurance payable ($250 x 30%) $75 Union dues payable $50 Salaries and wages payable $6,369 (To record the payroll expense) B. Recording of remittance of the employee's salary with cash on June 1: June 1 Salaries and wages payable $6,369 Cash $6,369 (To record the payment of salary)

Answered: Toren Inc. employs one person to run…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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