Wind Beneath My Wings Inc. employs one person to run its wind energy company and July is the first pay period for this employee. The employee’s gross income for the month of July is $6,900. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to the employee. Payroll for the month of July is as follows: FICA Social Security tax rate at 6.2%, FICA Medicare tax rate at 1.45%, federal income tax of $445, state income tax of $82, health-care insurance premium of $450, and pension plan of $320. The employee is responsible for covering 35% of the health insurance premium and the employer is responsible for 65% of the health insurance premium. The employer matches 75% of employee pension plan contributions. CashHealth Insurance PayableUnion Dues PayableBenefits ExpenseState Unemployment Tax PayableFederal Unemployment Tax PayableSalaries ExpenseFICA Medicare Tax PayableFederal Income Tax Payable401(k) Retirement Plan PayableEmployer PayrolI Taxes ExpenseVacation Benefit PayableLocal Income Tax PayablePension Plan PayableDonations PayableSalaries PayableState Income Tax PayableFICA Social Security Tax PayablePLEASE NOTE: You must follow the format in the textbook, along with the order of the payroll items listed in the problem above. You will enter the account names exactly as written above and alcommas as needed (i.e. $12,345.67).Record the journal entry to recognize employee payroll for the month of July; dated July 31, 2019.DRCRCRCRCRCRCRCRRecord remittance of the employee's salary with cash on August 1.DRCR Record the two journal entries for the employer payroll for the month of July, dated July 31, 2017.DRCRCRCRCRDRCRCRRecord the two journal entries for the payment in cash of all employer liabilities only on June 1.DRDRDRDRDRDRCRDRDRCR

Journal entries are entered in account books to record each and every financial transaction related…

Answered: Wind Beneath My Wings Inc. employs one…

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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Wind Beneath My Wings Inc. employs one person to run its wind energy company and July is the first pay period for this employee. The employee’s gross income for the month of July is $6,900. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to the employee. Payroll for the month of July is as follows: FICA Social Security tax rate at 6.2%, FICA Medicare tax rate at 1.45%, federal income tax of $445, state income tax of $82, health-care insurance premium of $450, and pension plan of $320. The employee is responsible for covering 35% of the health insurance premium and the employer is responsible for 65% of the health insurance premium. The employer matches 75% of employee pension plan contributions.

Cash
Health Insurance Payable
Union Dues Payable
Benefits Expense
State Unemployment Tax Payable
Federal Unemployment Tax Payable
Salaries Expense
FICA Medicare Tax Payable
Federal Income Tax Payable
401(k) Retirement Plan Payable
Employer PayrolI Taxes Expense
Vacation Benefit Payable
Local Income Tax Payable
Pension Plan Payable
Donations Payable
Salaries Payable
State Income Tax Payable
FICA Social Security Tax Payable
PLEASE NOTE: You must follow the format in the textbook, along with the order of the payroll items listed in the problem above. You will enter the account names exactly as written above and al
commas as needed (i.e. $12,345.67).
Record the journal entry to recognize employee payroll for the month of July; dated July 31, 2019.
DR
CR
CR
CR
CR
CR
CR
CR
Record remittance of the employee's salary with cash on August 1.
DR
CR

Record the two journal entries for the employer payroll for the month of July, dated July 31, 2017.
DR
CR
CR
CR
CR
DR
CR
CR
Record the two journal entries for the payment in cash of all employer liabilities only on June 1.
DR
DR
DR
DR
DR
DR
CR
DR
DR
CR

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