Sunland Company has the following data for the weekly payroll ending January 31.     Hours             Employee   M   T   W   T   F   S   Hourly Rate   Federal Income Tax Withholding   Health Insurance L. Helton   8   8   10   8   10   3   $10   $34   $10 R. Kenseth   8   8   8   8   8   3   16   37   25 D. Tavaras   9   10   8   8   9   0   13   58   25 Employees are paid 1½ times the regular hourly rate for all hours worked in excess of 40 hours per week. FICA taxes are 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). Sunland Company is subject to 5.4% state unemployment taxes and 0.6% federal unemployment taxes on the first $7,000 of gross earnings. Prepare the journal entry to record Sunland’s payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 15.25.)

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter9: Payroll Accounting: Employer Taxes And Reports
Section: Chapter Questions
Problem 1SEA: CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL TAXES Portions of the payroll register for...
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Sunland Company has the following data for the weekly payroll ending January 31.

   
Hours
           
Employee
 
M
 
T
 
W
 
T
 
F
 
S
 
Hourly Rate
 
Federal Income Tax Withholding
 
Health Insurance
L. Helton
  8   8   10   8   10   3   $10   $34   $10
R. Kenseth
  8   8   8   8   8   3   16   37   25
D. Tavaras
  9   10   8   8   9   0   13   58   25


Employees are paid 1½ times the regular hourly rate for all hours worked in excess of 40 hours per week. FICA taxes are 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). Sunland Company is subject to 5.4% state unemployment taxes and 0.6% federal unemployment taxes on the first $7,000 of gross earnings.

Prepare the journal entry to record Sunland’s payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 15.25.)

Date
Account Titles and Explanation
Debit
Credit
Jan. 31
enter an account title for the journal entry on January 31
enter a debit amount
enter a credit amount
 
enter an account title for the journal entry on January 31
enter a debit amount
enter a credit amount
 
enter an account title for the journal entry on January 31
enter a debit amount
enter a credit amount
 
enter an account title for the journal entry on January 31
enter a debit amount
enter a credit amount
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