Required information Skip to question   [The following information applies to the questions displayed below.]   BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 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.     Gross Pay through August 31   Gross Pay for September a.   $ 6,400         $ 800     b.     2,000           2,100     c.     122,100           8,000         Assuming situation (a), prepare the employer’s September 30 journal entries to record salary expense and its related payroll liabilities for this employee. The employee’s federal income taxes withheld by the employer are $80 for this pay period. Complete this question by entering your answers in the tabs below.   Taxes to be Withheld From Gross Pay General Journal The employee’s federal income taxes withheld by the employer are $80 for this pay period. Compute the taxes to be withheld from gross pay for this employee. (Round your answers to 2 decimal places.)         Taxes to be Withheld From Gross Pay (Employee-Paid Taxes)   September Earnings Subject to Tax Tax Rate Tax Amount Federal income tax     $80.00                       Journal entry worksheet       Prepare the employer's September 30 journal entry to record accrued salary expense and its related payroll liabilities for this employee. Note: Enter debits before credits.     Date General Journal Debit Credit Sep 30

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 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.

 

  Gross Pay through
August 31
  Gross Pay for
September
a.   $ 6,400         $ 800    
b.     2,000           2,100    
c.     122,100           8,000    
 

 

Assuming situation (a), prepare the employer’s September 30 journal entries to record salary expense and its related payroll liabilities for this employee. The employee’s federal income taxes withheld by the employer are $80 for this pay period.

Complete this question by entering your answers in the tabs below.

 
  • Taxes to be Withheld From Gross Pay
  • General Journal

The employee’s federal income taxes withheld by the employer are $80 for this pay period. Compute the taxes to be withheld from gross pay for this employee. (Round your answers to 2 decimal places.)

 
 
 
 
Taxes to be Withheld From Gross Pay (Employee-Paid Taxes)
  September Earnings Subject to Tax Tax Rate Tax Amount
Federal income tax     $80.00
       
       
   
 
Journal entry worksheet
 
 
 
  • Prepare the employer's September 30 journal entry to record accrued salary expense and its related payroll liabilities for this employee.
Note: Enter debits before credits.
 
 
Date General Journal Debit Credit
Sep 30      
       
     
 

 

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We have the following information:

  • FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee
  • FICA Medicare taxes are 1.45% of gross pay
  • FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee

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