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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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