Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,500 each week.Additional tax information includes: FICA tax—OASDI6.2% on first $128,400 FICA tax—HI1.45% on total pay Federal income tax$232.00 per pay State income tax22% of the federal income tax withholding Federal unemployment tax0.6% on first $7,000 State unemployment tax0.05% on first $14,000Additional payroll deductions include: 401(k) plan3% per pay Child support garnishment$100 per pay Health insurance premium$95 per pay Record the payroll entry and payroll tax entry for the pay of the week ended June 7 (his year-to-date pay is $31,500).If an amount box does not require an entry, leave it blank or enter "0". Round your answers to the nearest cent. AccountDebitCreditPayment of wages Payroll taxes

The amount that the employers pays the employee is known as gross wages and there are a lot of…

Answered: Kip Bowman is owner and sole employee…

PAYROLL ACCT.,2019 ED.(LL)-TEXT

19th Edition

ISBN:9781337619783

Author:BIEG

Publisher:BIEG

Chapter6: Analysing And Journalizing Payroll

Section: Chapter Questions

Problem 7PA

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Question

Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of $1,500 each week.

*Additional tax information includes:*
	FICA tax—OASDI	6.2% on first $128,400
	FICA tax—HI	1.45% on total pay
	Federal income tax	$232.00 per pay
	State income tax	22% of the federal income tax withholding
	Federal unemployment tax	0.6% on first $7,000
	State unemployment tax	0.05% on first $14,000
*Additional payroll deductions include:*
	401(k) plan	3% per pay
	Child support garnishment	$100 per pay
	Health insurance premium	$95 per pay

Record the payroll entry and payroll tax entry for the pay of the week ended June 7 (his year-to-date pay is $31,500).

If an amount box does not require an entry, leave it blank or enter "0". Round your answers to the nearest cent.

	Account	Debit	Credit
Payment of wages









Payroll taxes

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