The total payroll of Trolley Company for the manth of October, 2023 was $960,000, of which $780,000 represented amounts paid in excess of $118,500 to ertain employees. $500,000 represented amounts paid to employeres in excess of the $7,000 maximum subject to unemployment taxes. $96,000 of federal income taxes, $23, 500 of state inconne taxes and $18,000 of union dues were withheld from employee wages. The state unemployment tax is 1% the federal unemployment tax is 0.8%. The current F.1.C.A. tax is 7.65% on an employee's wages up to $118, 500 and 1.45% in excess of $118,500. REQUIRED: Prepare the journal entries necessary to record Trolley's payroll for the month of October.
The total payroll of Trolley Company for the manth of October, 2023 was $960,000, of which $780,000 represented amounts paid in excess of $118,500 to ertain employees. $500,000 represented amounts paid to employeres in excess of the $7,000 maximum subject to unemployment taxes. $96,000 of federal income taxes, $23, 500 of state inconne taxes and $18,000 of union dues were withheld from employee wages. The state unemployment tax is 1% the federal unemployment tax is 0.8%. The current F.1.C.A. tax is 7.65% on an employee's wages up to $118, 500 and 1.45% in excess of $118,500. REQUIRED: Prepare the journal entries necessary to record Trolley's payroll for the month of October.
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 1E
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Transcribed Image Text:The total payroll of Trolley Company for the manth of October, 2023 was $960,000, of which $780,000
represented amounts paid in excess of $118,500 to ertain employees. $500,000 represented amounts paid
to employeres in excess of the $7,000 maximum subject to unemployment taxes. $96,000 of federal
income taxes, $23, 500 of state inconne taxes and $18,000 of union dues were withheld from employee
wages. The state unemployment tax is 1% the federal unemployment tax is 0.8%. The current F.1.C.A.
tax is 7.65% on an employee's wages up to $118,500 and 1.45% in excess of $118,500. REQUIRED:
Prepare the journal entries necessary to record Trolley's payroll for the month of October.
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