Federal Insurance Contributions Act (FICA) Tax: It is a tax applicable on employees’ earnings as a certain percentage. Employers are also supposed to contribute their share and deposit the combined amount to the federal body. Federal Unemployment Tax Act: This is applicable on employers only. It’s a feature of federal social security program. The employees who lost their employment due to any reason other than their own fault are benefitted from this program. State Unemployment Tax Act: It is same as federal unemployment tax act, only difference is that it is a program by states. The employees who lost their employment due to any reason other than their own fault are benefitted from this program. Journal Entries: Entries to record the financial transactions during each accounting period are called journal entries. Income, liabilities and the giver are credited if the balance is increased and debited if the balance is reduced Expenses, assets and the receiver is debited if the balance is increased and credited if the balance is reduced in a journal entry . To compute: The missing values.

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Chapter 11, Problem 11.12E

(a)

To determine

Federal Insurance Contributions Act (FICA) Tax: It is a tax applicable on employees’ earnings as a certain percentage. Employers are also supposed to contribute their share and deposit the combined amount to the federal body.

Federal Unemployment Tax Act: This is applicable on employers only. It’s a feature of federal social security program. The employees who lost their employment due to any reason other than their own fault are benefitted from this program.

State Unemployment Tax Act: It is same as federal unemployment tax act, only difference is that it is a program by states. The employees who lost their employment due to any reason other than their own fault are benefitted from this program.

Journal Entries: Entries to record the financial transactions during each accounting period are called journal entries. Income, liabilities and the giver are credited if the balance is increased and debited if the balance is reduced Expenses, assets and the receiver is debited if the balance is increased and credited if the balance is reduced in a journal entry.

To compute: The missing values.

(b)

To determine

To journalize: The February payroll and the payment of payroll.

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