Assume the following data for Blossom Home Appliance Repair for the payroll quarter ended March 31. • Gross earnings $240,000.00 • Employee FICA taxes 18,360.00 • Federal income tax 48,000.00 • State income tax 4,799.00 • Number of employees this quarter: 30 Blossom is subject to the following rates: FICA 7.65% (the 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of 1.45% on all salaries and wages), state unemployment 5.4% up to $7,000, and federal unemployment 0.6% up to $7,000. No employee reached the limit for FICA taxes, and all employees reached the limit for unemployment taxes in the first quarter. Prepare the journal entry to record payment of employer taxes, assuming all taxes were paid on April 15. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Apr. 15 enter an account title for the journal entry on April 15 enter a debit amount enter a credit amount enter an account title for the journal entry on April 15 enter a debit amount enter a credit amount enter an account title for the journal entry on April 15 enter a debit amount enter a credit amount enter an account title for the journal entry on April 15 enter a debit amount enter a credit amount enter an account title for the journal entry on April 15 enter a debit amount enter a credit amount enter an account title for the journal entry on April 15 enter a debit amount enter a credit amount

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 4E

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Assume the following data for Blossom Home Appliance Repair for the payroll quarter ended March 31.

•	Gross earnings	$240,000.00
•	Employee FICA taxes	18,360.00
•	Federal income tax	48,000.00
•	State income tax	4,799.00
•	Number of employees this quarter:	30

Blossom is subject to the following rates: FICA 7.65% (the 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of 1.45% on all salaries and wages), state unemployment 5.4% up to $7,000, and federal unemployment 0.6% up to $7,000. No employee reached the limit for FICA taxes, and all employees reached the limit for unemployment taxes in the first quarter.

Prepare the journal entry to record payment of employer taxes, assuming all taxes were paid on April 15. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Apr. 15	enter an account title for the journal entry on April 15	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on April 15	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on April 15	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on April 15	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on April 15	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on April 15	enter a debit amount	enter a credit amount

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