In EB13, you prepared the journal entries for Janet Evanovich, an employee of Marc &amp; Associates. You have now been given the following additional information: June is the first pay period for this employee. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to the employee. FICA Social Security and FICA Medicare match employee deductions. The employer is responsible for 60% of the health insurance premium. The employer matches 50% of employee pension plan contributions. Using the information from EB13 and the additional information provided: A. Record the employer payroll for the month of June, dated June 30, 2017. B. Record the payment in cash of all employer liabilities only on July 1. FindFindarrow_forward Principles of Accounting Volume 1 19th Edition OpenStax Publisher: OpenStax College ISBN: 9781947172685 Solutions Chapter Section FindFindarrow_forward Principles of Accounting Volume 1 19th Edition OpenStax Publisher: OpenStax College ISBN: 9781947172685 Chapter 12, Problem 14EB Textbook Problem 1 views In EB13, you prepared the journal entries for Janet Evanovich, an employee of Marc & Associates. You have now been given the following additional information: June is the first pay period for this employee. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first$7,000 paid to the employee. FICA Social Security and FICA Medicare match employee deductions. The employer is responsible for 60% of the health insurance premium. The employer matches 50% of employee pension plan contributions.Using the information from EB13 and the additional information provided:A. Record the employer payroll for the month of June, dated June 30, 2017.B. Record the payment in cash of all employer liabilities only on July 1.

To determine

(a)

Introduction:

Payroll is a liability for employers. It includes employee salaries, provident fund deductions and deductions for taxes.

To prepare:

Journal entries for recognizing employer payroll liabilities.

Explanation of Solution

Recognize employer payroll:

 Date Account Debit ($) Credit ($) June, 30 2017 Employer Payroll Taxes Expense 1,023 Federal Unemployment Tax Payable ($7,500×0.6%) 45 ......State Unemployment Tax Payable ($7,500×5.4%) 405 .......FICA Social Security Tax Payable ($7,500×6.2%) 465 .......FICA Medicare Tax Payable ($7,500×1.45%) 108 (To recognize employer payroll liabilities for May)

Table (1)

• Employer payroll taxes expense is an expense and it is increased by $1,023. Therefore, employer payroll taxes expense account is debited with$1,023.
• Federal unemployment income tax payable is a liability and it is increased by $45. Therefore, federal income tax payble account is credited with$45
To determine

(b)

To prepare:

Journal entries for payment of employer payroll liabilities.

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