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During the month of February, Bridgeport Corp's employees earned wages of $79,920. Withholdings related to these wages were $6,114 for FICA, $7,668 for federal income tax, and $2.052 for state income tax. Costs incurred for unemployment taxes were $119 for federal and $173 for state. Prepare a tabular summary to record on February 28 (a) Salaries and wages expense and salaries and wages payable assuming that all February wages will be paid in March (b) The company's payroll tax expense. Include margin explanations for the changes in revenues and expenses. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced)

During the month of February, Bridgeport Corp's employees earned wages of $79,920. Withholdings related to these wages were $6,114 for FICA, $7,668 for federal income tax, and $2.052 for state income tax. Costs incurred for unemployment taxes were $119 for federal and $173 for state. Prepare a tabular summary to record on February 28 (a) Salaries and wages expense and salaries and wages payable assuming that all February wages will be paid in March (b) The company's payroll tax expense. Include margin explanations for the changes in revenues and expenses. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced)

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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During the month of February, Bridgeport Corp's employees earned wages of $79,920. Withholdings related to these wages were $6,114 for FICA, $7,668 for federal income tax, and $2,052 for state income tax. Costs incurred for unemployment taxes were $119 for federal and $173 for state. Prepare a tabular summary to record on February 28 (a) Salaries and wages expense and salaries and wages payable assuming that all February wages will be paid in March (b) The company's payroll tax expense. Include margin explanations for the changes in revenues and expenses. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets Cash Salaries & Wages Pay. Fed. Inc. Taxes Pay. FICA Tax (a) Feb. 28 24 (b) Feb. 28 Liabilities FICA Taxes Pay. St. Inc. Taxes Pay. Fed. Unemp. Taxes Pay. State Unemp. Taxes Pay. %24 %24 %24 Stockholders' Equity Pd. in Capital Retained Earnings Common Stock Revenue Expense Dividend $4 %24 %24 Income tax expense Salaries & wages expense Payroll tax expense
Transcribed Image Text:During the month of February, Bridgeport Corp's employees earned wages of $79,920. Withholdings related to these wages were $6,114 for FICA, $7,668 for federal income tax, and $2,052 for state income tax. Costs incurred for unemployment taxes were $119 for federal and $173 for state. Prepare a tabular summary to record on February 28 (a) Salaries and wages expense and salaries and wages payable assuming that all February wages will be paid in March (b) The company's payroll tax expense. Include margin explanations for the changes in revenues and expenses. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets Cash Salaries & Wages Pay. Fed. Inc. Taxes Pay. FICA Tax (a) Feb. 28 24 (b) Feb. 28 Liabilities FICA Taxes Pay. St. Inc. Taxes Pay. Fed. Unemp. Taxes Pay. State Unemp. Taxes Pay. %24 %24 %24 Stockholders' Equity Pd. in Capital Retained Earnings Common Stock Revenue Expense Dividend $4 %24 %24 Income tax expense Salaries & wages expense Payroll tax expense
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