FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Required information
[The following information applies to the questions displayed below.]
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 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.
a.
نفة
Gross Pay through
August 31
$ 6,100
2,100
133,000
Gross Pay for
September
$ 1,400
2,200
9,600
Assuming situation (a), prepare the employer's September 30 journal entry to record salary expense and its related payroll liabilities for
this employee. The employee's federal income taxes withheld by the employer are $90 for this pay period.
Answer is complete but not entirely correct.
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 $90 for this pay period. Assuming situation (a), compute
the taxes to be withheld from gross pay for this employee.
Note: Round your answers to 2 decimal places.
Taxes to be withheld From Gross Pay (Employee-Paid Taxes)
Federal income tax
FICA Medicare
✓ $
FICA-Social Security
September
Earnings Subject
to Tax
Tax Rate
Tax
Amount
$
90.00
1,400.00
1,400.00 ✓
6.20% X
1.45% x
Total taxes withheld
86.80
20.30
$
197.10
< Taxes to be withheld From Gross Pay
General Journal >
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Transcribed Image Text:! Required information [The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 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. a. نفة Gross Pay through August 31 $ 6,100 2,100 133,000 Gross Pay for September $ 1,400 2,200 9,600 Assuming situation (a), prepare the employer's September 30 journal entry to record salary expense and its related payroll liabilities for this employee. The employee's federal income taxes withheld by the employer are $90 for this pay period. Answer is complete but not entirely correct. 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 $90 for this pay period. Assuming situation (a), compute the taxes to be withheld from gross pay for this employee. Note: Round your answers to 2 decimal places. Taxes to be withheld From Gross Pay (Employee-Paid Taxes) Federal income tax FICA Medicare ✓ $ FICA-Social Security September Earnings Subject to Tax Tax Rate Tax Amount $ 90.00 1,400.00 1,400.00 ✓ 6.20% X 1.45% x Total taxes withheld 86.80 20.30 $ 197.10 < Taxes to be withheld From Gross Pay General Journal >
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