XYZ Company had gross wages of $355,000 during the week ended November 30. The amount of wages subject to social security tax was $285,000, while the amount of wages subject to federal and state unemployment taxes was $18,000. Tax rates are as follows. Social security 6.0% Medicare 1.5% State unemployment 5.4% Federal unemployment 0.8% The total amount withheld from employee wages for federal taxes was $66,900. The full amount of gross wages is subject to Medicare tax. a. Journalize the entry to record the payroll for the week of November 30. DATE Debit Credit X/X b. Using the information from the question above, journalize the entry to record the payroll tax expense incurred for the week of November 30. DATE Debit Credit X/X
XYZ Company had gross wages of $355,000 during the week ended November 30. The amount of wages subject to social security tax was $285,000, while the amount of wages subject to federal and state
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Social security |
6.0% |
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Medicare |
1.5% |
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State unemployment |
5.4% |
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Federal unemployment |
0.8% |
The total amount withheld from employee wages for federal taxes was $66,900. The full amount of gross wages is subject to Medicare tax.
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b. Using the information from the question above, journalize the entry to record the payroll tax expense incurred for the week of November 30.
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X/X |
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