During the month of March, Blossom Company's employees earned wages of $83,000. Withholdings related to these wages were $6,350 for FICA, $9,727 for federal income tax, $4,020 for state income tax, and $519 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $908 for state unemployment tax. (a) (b) Prepare a tabular summary to record salaries and wages expense and salaries and wages payable on March 31. Assume that wages earned during March will be paid during April. Prepare a tabular summary to record the company's payroll tax expense. Include margin explanations for 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.) Mar. 31 Mar. 31 LA Assets Cash Salaries & Wages Payable Federal Income Taxes Payable + FICA Taxes Pay
During the month of March, Blossom Company's employees earned wages of $83,000. Withholdings related to these wages were $6,350 for FICA, $9,727 for federal income tax, $4,020 for state income tax, and $519 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $908 for state unemployment tax. (a) (b) Prepare a tabular summary to record salaries and wages expense and salaries and wages payable on March 31. Assume that wages earned during March will be paid during April. Prepare a tabular summary to record the company's payroll tax expense. Include margin explanations for 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.) Mar. 31 Mar. 31 LA Assets Cash Salaries & Wages Payable Federal Income Taxes Payable + FICA Taxes Pay
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter8: Employer Taxes, Payments, And Reports
Section: Chapter Questions
Problem 3E
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