FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and
FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6 % and SUTA taxes are 5.4% of the first
$7,000 paid to its employee.
a.
b.
c.
Gross Pay through
August 31
$ 5,500
3,000
132,400
Assuming situation (a), prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its
related liabilities.
Gross Pay for
September
$ 2,300
3,100
9,000
Complete this question by entering your answers in the tabs below.
Payroll Taxes
Expense
General
Journal
Assuming situation (a), compute the payroll taxes expense.
Note: Round your answers to 2 decimal places.
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Transcribed Image Text:BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6 % and SUTA taxes are 5.4% of the first $7,000 paid to its employee. a. b. c. Gross Pay through August 31 $ 5,500 3,000 132,400 Assuming situation (a), prepare the employer's September 30 journal entry to record the employer's payroll taxes expense and its related liabilities. Gross Pay for September $ 2,300 3,100 9,000 Complete this question by entering your answers in the tabs below. Payroll Taxes Expense General Journal Assuming situation (a), compute the payroll taxes expense. Note: Round your answers to 2 decimal places.
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