**Payroll and Tax Accounting Exercise****QUESTION 25**XYZ Company is processing payroll for the week ending January 9th. Employee earnings total $5,000. Federal income tax withheld from employee paychecks totaled $1,100. The social security tax rate is 6%, the Medicare tax rate is 1.5%, the state unemployment tax rate is 5.4%, and the federal unemployment tax rate is 0.8%.a) Journalize the payroll entry for the week.| DATE | Debit | Credit ||------|-------|--------|| X/X | | || | | || | | || | | |b) Journalize the payroll tax entry for the week.| DATE | Debit | Credit ||------|-------|--------|| X/X | | || | | || | | || | | |**QUESTION 26**Click Save and Submit to save and submit. Click Save All Answers to save all answers.---This exercise provides a practical scenario for students to practice payroll and tax accounting. The goal is to calculate and record payroll-related expenses and liabilities properly. This includes the deduction of federal income taxes, social security, Medicare, and unemployment taxes, which are part of both employee and employer responsibilities. Students should calculate appropriate amounts based on the given rates and complete the journal entries accordingly.

Employees total earnings=$5,000 Federal Income tax Withheld=$1100 Social Security tax rate=6% =…

XYZ Company is processing payroll for the week ending January 9th. Employee earnings total $5,000. Federal income tax withheld from employee paychecks totaled $1,100. The social security tax rate is 6%, the Medicare ta: rate is 1.5%, the state unemployment tax rate is 5.4% and the federal unemployment tax rate is .8%. a) Journalize the pavroll entry for the wook

XYZ Company is processing payroll for the week ending January 9th. Employee earnings total $5,000. Federal income tax withheld from employee paychecks totaled $1,100. The social security tax rate is 6%, the Medicare ta: rate is 1.5%, the state unemployment tax rate is 5.4% and the federal unemployment tax rate is .8%. a) Journalize the pavroll entry for the wook

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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