Emily Turnbull, president of Aerobic Equipment Corporation, is concerned about her employees’ well-being. The company offers its employees free medical, dental, and life insurance coverage. It also matches employee contributions to a voluntary retirement plan up to 5% of their salaries. Assume that no employee’s cumulative wages exceed the relevant wage bases. Payroll information for the biweekly payroll period ending January 24 is listed below. Wages and salaries $2,300,000 Employee contribution to voluntary retirement plan 115,000 Medical insurance premiums paid by employer 46,000 Dental insurance premiums paid by employer 16,100 Life insurance premiums paid by employer 8,050 Federal and state income tax withheld 494,500 FICA tax rate 7.65% Federal and state unemployment tax rate 6.20% Required: 1., 2. & 3. Record the necessary journal entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Record the employee salary expense, withholdings, and salaries payable. Date General Journal Debit Credit January 24 Record the employer-provided fringe benefits. Date General Journal Debit Credit January 24 Record the employer payroll taxes. Date General Journal Debit Credit January 24
Emily Turnbull, president of Aerobic Equipment Corporation, is concerned about her employees’ well-being. The company offers its employees free medical, dental, and life insurance coverage. It also matches employee contributions to a voluntary retirement plan up to 5% of their salaries. Assume that no employee’s cumulative wages exceed the relevant wage bases. Payroll information for the biweekly payroll period ending January 24 is listed below. Wages and salaries $2,300,000 Employee contribution to voluntary retirement plan 115,000 Medical insurance premiums paid by employer 46,000 Dental insurance premiums paid by employer 16,100 Life insurance premiums paid by employer 8,050 Federal and state income tax withheld 494,500 FICA tax rate 7.65% Federal and state unemployment tax rate 6.20% Required: 1., 2. & 3. Record the necessary journal entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Record the employee salary expense, withholdings, and salaries payable. Date General Journal Debit Credit January 24 Record the employer-provided fringe benefits. Date General Journal Debit Credit January 24 Record the employer payroll taxes. Date General Journal Debit Credit January 24
Chapter4: Income Tax Withholding
Section: Chapter Questions
Problem 6SSQ
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Emily Turnbull, president of Aerobic Equipment Corporation, is concerned about her employees’ well-being. The company offers its employees free medical, dental, and life insurance coverage. It also matches employee contributions to a voluntary retirement plan up to 5% of their salaries. Assume that no employee’s cumulative wages exceed the relevant wage bases. Payroll information for the biweekly payroll period ending January 24 is listed below.
Wages and salaries | $2,300,000 |
Employee contribution to voluntary retirement plan | 115,000 |
Medical insurance premiums paid by employer | 46,000 |
Dental insurance premiums paid by employer | 16,100 |
Life insurance premiums paid by employer | 8,050 |
Federal and state income tax withheld | 494,500 |
FICA tax rate | 7.65% |
Federal and state |
6.20% |
Required:
1., 2. & 3. Record the necessary journal entries. (If no entry is required for a transaction/event, select "No
- Record the employee salary expense, withholdings, and salaries payable.
|
- Record the employer-provided
fringe benefits .
|
- Record the employer payroll taxes.
|
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