Answered: JOURNAL POST. DATE DESCRIPTION DEBIT…

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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Question

a. Cal Ruther, an employer is subject to FICA taxes but exempt from FUTA and SUTA taxes. During the last quarter of the year, his employees earned minthly wages of $8,500 all of which is taxable. The amount of federal income taxes withheld each month is $1,040 Journalize the payment of wages and record the payroll tax on November 29.

b. Prior to posting the November 29 payroll transaction, FICA taxes payable - OASDI, FICA Taxes Payable -HI, and Employees FIT Payable had rezo balances. Ruther must pay the FICA Taxes and income taxes withheld on the November 29 payroll. Journalize the electronic transfer of the payroll taxes on December 16.

JOURNAL
POST.
DATE
DESCRIPTION
DEBIT
CREDIT
REF.
10
10

JOURNAL
POST.
REF.
DATE
DESCRIPTION
DEBIT
CREDIT

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