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Urban Fit Corp Fit ation paid salaries and wages of $71,900 to its employees for the month. Of this amount, $1,900 was pai amount, $1,900 was paid to employees who had already exceeded wages of $64,200. Also, $21,900 was paid to employees who had already been paid the SUTA maximum. FICA employee withholdings consist of a social security tax of 6.20% on the first $64,200 earned, plus a Medicare tax of 1.45% on all wages. Urban Fit pays employer taxes as follows: its required FICA contribution, plus a FUTA tax of 6.0% on wages up to the SUTA maximum. Of this amount, 5.4% is payable to the state and 0.6% is payable to the U.S. Treasury. Employee income tax withholding was $17,500. Deductions included: union dues (in conformity with the union agreement), $1,500, and nsurance premiums, $6,000. Required Provide the entries to: a. Record liabilities for payroll deductions. . Record payroll tax expenses. c. Record remittance of payroll obligations, including salaries payable to employees. Note: Round your answers to the nearest whole dollar. Note: List multiple debits or credits (when applicable) in alphabetical order. Account Name Cr. a. Salaries Expense ◆ ÷ ✓ + ✓ + ✓ + ✓ + ✓ + ✓ ♦ ✓ + ✓ + ✓ + ✓ → ✓ + + ✓ + ✓ ◆ ✓ + ✓ To record payments for taxes and payroll withholdings Salaries Payable FICA Taxes Payable Insurance Premium Payable Salaries Payable Union Dues Payable Withholding Taxes Payable b. Payroll Tax Expense FICA Taxes Payable FUTA Taxes Payable SUTA Taxes Payable c. FICA Taxes Payable FUTA Taxes Payable Insurance Premium Payable SUTA Taxes Payable Union Dues Payable Withholding Taxes Payable Cash ✓ Dr. 71,900 ✓ 0✓ 0✔ 0✓ 0✓ 0✓ 0x 0✓ 0✓ 0✓ 0x 0x 0x 0x 0x 0x 0✓ 0x 0✔ 4,404 x 6,000 ✓ 0x 1,500 ✓ 17,500✔ 0✔ 0 x 0 x 0x 0✔ 0✓ 0✓ 0 ✓ 0✓ 0✓ 0 x 0✓

Urban Fit Corp Fit ation paid salaries and wages of $71,900 to its employees for the month. Of this amount, $1,900 was pai amount, $1,900 was paid to employees who had already exceeded wages of $64,200. Also, $21,900 was paid to employees who had already been paid the SUTA maximum. FICA employee withholdings consist of a social security tax of 6.20% on the first $64,200 earned, plus a Medicare tax of 1.45% on all wages. Urban Fit pays employer taxes as follows: its required FICA contribution, plus a FUTA tax of 6.0% on wages up to the SUTA maximum. Of this amount, 5.4% is payable to the state and 0.6% is payable to the U.S. Treasury. Employee income tax withholding was $17,500. Deductions included: union dues (in conformity with the union agreement), $1,500, and nsurance premiums, $6,000. Required Provide the entries to: a. Record liabilities for payroll deductions. . Record payroll tax expenses. c. Record remittance of payroll obligations, including salaries payable to employees. Note: Round your answers to the nearest whole dollar. Note: List multiple debits or credits (when applicable) in alphabetical order. Account Name Cr. a. Salaries Expense ◆ ÷ ✓ + ✓ + ✓ + ✓ + ✓ + ✓ ♦ ✓ + ✓ + ✓ + ✓ → ✓ + + ✓ + ✓ ◆ ✓ + ✓ To record payments for taxes and payroll withholdings Salaries Payable FICA Taxes Payable Insurance Premium Payable Salaries Payable Union Dues Payable Withholding Taxes Payable b. Payroll Tax Expense FICA Taxes Payable FUTA Taxes Payable SUTA Taxes Payable c. FICA Taxes Payable FUTA Taxes Payable Insurance Premium Payable SUTA Taxes Payable Union Dues Payable Withholding Taxes Payable Cash ✓ Dr. 71,900 ✓ 0✓ 0✔ 0✓ 0✓ 0✓ 0x 0✓ 0✓ 0✓ 0x 0x 0x 0x 0x 0x 0✓ 0x 0✔ 4,404 x 6,000 ✓ 0x 1,500 ✓ 17,500✔ 0✔ 0 x 0 x 0x 0✔ 0✓ 0✓ 0 ✓ 0✓ 0✓ 0 x 0✓

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Urban Fit Corporation paid salaries and wages of $71,900 to its employees for the month. Of this amount, $1,900 was paid to employees who had already exceeded wages of $64,200. Also, $21,900 was paid to employees who had already been paid the SUTA maximum. FICA employee withholdings consist of a social security tax of 6.20% on the first $64,200 earned, plus a Medicare tax of 1.45% on all wages. Urban Fit pays employer taxes as follows: its required FICA contribution, plus a FUTA tax of 6.0% on wages up to the SUTA maximum. Of this amount, 5.4% is payable to the state and 0.6% is payable to the U.S. Treasury. Employee income tax withholding was $17,500. Deductions included: union dues (in conformity with the union agreement), $1,500, and insurance premiums, $6,000. Required Provide the entries to: a. Record liabilities for payroll deductions. b. Record payroll tax expenses. c. Record remittance of payroll obligations, including salaries payable to employees. Note: Round your answers to the nearest whole dollar. Note: List multiple debits or credits (when applicable) in alphabetical order. Account Name Cr. a. Salaries Expense FICA Taxes Payable Insurance Premium Payable Salaries Payable Union Dues Payable Withholding Taxes Payable b. Payroll Tax Expense FICA Taxes Payable FUTA Taxes Payable SUTA Taxes Payable C. FICA Taxes Payable FUTA Taxes Payable Insurance Premium Payable SUTA Taxes Payable Union Dues Payable Withholding Taxes Payable Cash ◆ → <► < ◆▶ → ◆▶ ◆ → ◄► > ◄► > < > To record payments for taxes and payroll withholdings Salaries Payable Cash > Dr. 71,900 0✔ 0✔ 0✔ 0 ✓ 0✔ 0 x 0✔ 0✔ 0✔ 0 x 0 x 0 x 0 x 0 x 0 x 0✔ 0 x O 0 4,404 X 6,000 0 x 1,500 17,500 0✔ 0 x 0 x 0 x 0✔ 0✔ 0 0 0✔ 0✔ 0 x 0✔ 0 x ←
Transcribed Image Text:Urban Fit Corporation paid salaries and wages of $71,900 to its employees for the month. Of this amount, $1,900 was paid to employees who had already exceeded wages of $64,200. Also, $21,900 was paid to employees who had already been paid the SUTA maximum. FICA employee withholdings consist of a social security tax of 6.20% on the first $64,200 earned, plus a Medicare tax of 1.45% on all wages. Urban Fit pays employer taxes as follows: its required FICA contribution, plus a FUTA tax of 6.0% on wages up to the SUTA maximum. Of this amount, 5.4% is payable to the state and 0.6% is payable to the U.S. Treasury. Employee income tax withholding was $17,500. Deductions included: union dues (in conformity with the union agreement), $1,500, and insurance premiums, $6,000. Required Provide the entries to: a. Record liabilities for payroll deductions. b. Record payroll tax expenses. c. Record remittance of payroll obligations, including salaries payable to employees. Note: Round your answers to the nearest whole dollar. Note: List multiple debits or credits (when applicable) in alphabetical order. Account Name Cr. a. Salaries Expense FICA Taxes Payable Insurance Premium Payable Salaries Payable Union Dues Payable Withholding Taxes Payable b. Payroll Tax Expense FICA Taxes Payable FUTA Taxes Payable SUTA Taxes Payable C. FICA Taxes Payable FUTA Taxes Payable Insurance Premium Payable SUTA Taxes Payable Union Dues Payable Withholding Taxes Payable Cash ◆ → <► < ◆▶ → ◆▶ ◆ → ◄► > ◄► > < > To record payments for taxes and payroll withholdings Salaries Payable Cash > Dr. 71,900 0✔ 0✔ 0✔ 0 ✓ 0✔ 0 x 0✔ 0✔ 0✔ 0 x 0 x 0 x 0 x 0 x 0 x 0✔ 0 x O 0 4,404 X 6,000 0 x 1,500 17,500 0✔ 0 x 0 x 0 x 0✔ 0✔ 0 0 0✔ 0✔ 0 x 0✔ 0 x ←
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