The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be: Debit Credit Wages Expense 24,762.70 FICA Taxes Payable—OASDI 1,535.29 FICA Taxes Payable—HI 359.06 FIT Payable 3,714.00 SIT Payable 55.25 Group Insurance Payments W/H 54.70 Cash 19,044.40 Example 6-7 The journal entry to record the payroll tax entry from Figure 6.1 on pages 6-2 and 6-3 would be (assume a SUTA tax rate of 3.0%): Debit Credit Payroll Taxes 2,785.81 FICA Taxes Payable—OASDI 1,535.29 FICA Taxes Payable—HI 359.06 FUTA Taxes Payable 148.58 SUTA Taxes Payable 742.88 Vulcra, Inc., has a semimonthly payroll of $67,000 on September 15, 20--. The total payroll is taxable under FICA Taxes-HI; $63,850 is taxable under FICA Taxes-OASDI; and $10,300 is taxable under FUTA and SUTA. The state contribution rate for the company is 4.1%. The amount withheld for federal income taxes is $9,911. The amount withheld for state income taxes is $1,410. a. Journalize the payment of the wages, and record the payroll taxes on September 15. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent. b. Assume that the employees of Vulcra, Inc., must also pay state contributions (disability insurance) of 1% on the taxable payroll of $62,100 and that the employees' contributions are to be deducted by the employer. Journalize the September 15 payment of wages, assuming that the state contributions of the employees are kept in a separate account. For a compound transaction, if an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
The
| Debit | Credit | |
| Wages Expense | 24,762.70 | |
| FICA Taxes Payable—OASDI | 1,535.29 | |
| FICA Taxes Payable—HI | 359.06 | |
| FIT Payable | 3,714.00 | |
| SIT Payable | 55.25 | |
| Group Insurance Payments W/H | 54.70 | |
| Cash | 19,044.40 |
Example 6-7
The journal entry to record the payroll tax entry from Figure 6.1 on pages 6-2 and 6-3 would be (assume a SUTA tax rate of 3.0%):
| Debit | Credit | |
| Payroll Taxes | 2,785.81 | |
| FICA Taxes Payable—OASDI | 1,535.29 | |
| FICA Taxes Payable—HI | 359.06 | |
| FUTA Taxes Payable | 148.58 | |
| SUTA Taxes Payable | 742.88 |
Vulcra, Inc., has a semimonthly payroll of $67,000 on September 15, 20--. The total payroll is taxable under FICA Taxes-HI; $63,850 is taxable under FICA Taxes-OASDI; and $10,300 is taxable under FUTA and SUTA. The state contribution rate for the company is 4.1%. The amount withheld for federal income taxes is $9,911. The amount withheld for state income taxes is $1,410.
a. Journalize the payment of the wages, and record the payroll taxes on September 15.
If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
b. Assume that the employees of Vulcra, Inc., must also pay state contributions (disability insurance) of 1% on the taxable payroll of $62,100 and that the employees' contributions are to be deducted by the employer. Journalize the September 15 payment of wages, assuming that the state contributions of the employees are kept in a separate account.
For a compound transaction, if an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
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