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(a) Salaries and Wages Expense FICA Taxes Payable Federal Income Taxes Payable State Income Taxes Payable Health Insurance Payable United Fund Contributions Payable Salaries and Wages Payable

(a) Salaries and Wages Expense FICA Taxes Payable Federal Income Taxes Payable State Income Taxes Payable Health Insurance Payable United Fund Contributions Payable Salaries and Wages Payable

FINANCIAL ACCOUNTING
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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(a) Salaries and Wages Expense FICA Taxes Payable Federal Income Taxes Payable State Income Taxes Payable Health Insurance Payable United Fund Contributions Payable Salaries and Wages Payable (b) Payroll Tax Expense FICA Taxes Payable Federal Unemployment Taxes Payable State Unemployment Taxes Payable
Transcribed Image Text:(a) Salaries and Wages Expense FICA Taxes Payable Federal Income Taxes Payable State Income Taxes Payable Health Insurance Payable United Fund Contributions Payable Salaries and Wages Payable (b) Payroll Tax Expense FICA Taxes Payable Federal Unemployment Taxes Payable State Unemployment Taxes Payable
For the year ended December 31, 2022, Vaughn Electrical Repair Company reports the following summary payroll data. Gross earnings: Administrative salaries $187,000 Electricians' wages 383,000 Total $570,000 Deductions: FICA taxes $38,459 Federal income taxes withheld 160,500 State income taxes withheld (3%) 17,100 United Fund contributions payable 27,500 Health insurance premiums 18,000 Total $261,559 Vaughn's payroll taxes are Social Security tax 6.2%, Medicare tax 1.45%, state unemployment 2.5% (due to a stable employment record), and 0.6% federal unemployment. Gross earnings subject to Social Security taxes of 6.2% total $487,000, and gross earnings subject to unemployment taxes total $124,000. No employee exceeds the $132,900 limit related to FICA taxes.
Transcribed Image Text:For the year ended December 31, 2022, Vaughn Electrical Repair Company reports the following summary payroll data. Gross earnings: Administrative salaries $187,000 Electricians' wages 383,000 Total $570,000 Deductions: FICA taxes $38,459 Federal income taxes withheld 160,500 State income taxes withheld (3%) 17,100 United Fund contributions payable 27,500 Health insurance premiums 18,000 Total $261,559 Vaughn's payroll taxes are Social Security tax 6.2%, Medicare tax 1.45%, state unemployment 2.5% (due to a stable employment record), and 0.6% federal unemployment. Gross earnings subject to Social Security taxes of 6.2% total $487,000, and gross earnings subject to unemployment taxes total $124,000. No employee exceeds the $132,900 limit related to FICA taxes.
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