FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Elizabeth's regular hourly wage rate is $22, and she receives an hourly rate of $33 for work in excess of 40 hours. During a January pay
period, Elizabeth works 49 hours. Elizabeth's federal income tax withholding is $97, and she has no voluntary deductions.
Prepare the employer's journal entry to record payroll taxes for the period. Ignore unemployment taxes. Assume the FICA tax rate is
7.65%. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round the answers to 2 decimal
places, eg. 15.25)
Date Account Titles and Explanation
Jan, 15
Payroll Tax Expense
FICA Taxes Payable
Debit
98.30
Credit
98.30
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Transcribed Image Text:Elizabeth's regular hourly wage rate is $22, and she receives an hourly rate of $33 for work in excess of 40 hours. During a January pay period, Elizabeth works 49 hours. Elizabeth's federal income tax withholding is $97, and she has no voluntary deductions. Prepare the employer's journal entry to record payroll taxes for the period. Ignore unemployment taxes. Assume the FICA tax rate is 7.65%. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round the answers to 2 decimal places, eg. 15.25) Date Account Titles and Explanation Jan, 15 Payroll Tax Expense FICA Taxes Payable Debit 98.30 Credit 98.30
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