Daniel company has 10 employees who were paid the following wages during 1984. Tom-35,000 Samuel-175,000 Trudy-175,000 Gamy-80,000 Salmon75,000 Felix150,000 Goodman 45,000 Bruce-67,000 William-68,000 Capeman-75,000 the state unemployment tax is 5.4%. the federal unemployment tax is 0.6%. the maximum unemployment wages per employee are 7,000 for both the state and the federal government. Income tax is withheld at the rate of 22% for all employees who have annual wages over $50,000. If wages are under %50,000, the withholding rate is 15%. Daniel company is in a state that does not impose income taxes. Social security is imposed on both the employer and employee at the rate of 6.2% on the first $137,000 of wages. Medicare tax is imposed on both the employer and the employee at the rate of 1.45% on total wages. 1. Calculate the amount of payroll taxes paid by the employer, Daniel company. 2. Prepare the journal entry to record the payment of the payroll. 3. Prepare the journal entry to record the payroll tax expense at 12/31/1984, assuming the payroll taxes will be pain in 1985. In detail, please.

Daniel company has 10 employees who were paid the following wages during 1984. Tom-35,000 Samuel-175,000 Trudy-175,000 Gamy-80,000 Salmon75,000 Felix150,000 Goodman 45,000 Bruce-67,000 William-68,000 Capeman-75,000 the state unemployment tax is 5.4%. the federal unemployment tax is 0.6%. the maximum unemployment wages per employee are 7,000 for both the state and the federal government. Income tax is withheld at the rate of 22% for all employees who have annual wages over $50,000. If wages are under %50,000, the withholding rate is 15%. Daniel company is in a state that does not impose income taxes. Social security is imposed on both the employer and employee at the rate of 6.2% on the first $137,000 of wages. Medicare tax is imposed on both the employer and the employee at the rate of 1.45% on total wages. 1. Calculate the amount of payroll taxes paid by the employer, Daniel company. 2. Prepare the journal entry to record the payment of the payroll. 3. Prepare the journal entry to record the payroll tax expense at 12/31/1984, assuming the payroll taxes will be pain in 1985. In detail, please.

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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