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Mooney Labs had the following payroll for the week ended February 28: Assumed tax rates are as follows: a. FICA: Social Security (employer) 6.2 percent (0.062) and (employee) 6.2 percent (0.062) on the first $113,700 for each employee and Medicare, 1.45 percent (0.0145) on all earnings for each employee. b. State unemployment tax, 5.4 percent (0.054) on the first $7,000 for each employee. c. Federal unemployment tax, 0.6 percent (0.006) on the first $7,000 for each employee. Required Record the following entries in general journal form: 1. The payroll entry as of February 28. 2. The entry to record the employer’s payroll taxes as of February 28 assuming that the total payroll is subject to the FICA taxes (combined Social Security and Medicare) and that $5,490 is subject to unemployment taxes. 3. The payment to the employees on March 2. (Assume that the company has transferred cash to Cash—Payroll Bank Account for this payroll.)

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College Accounting (Book Only): A ...

12th Edition
Cathy J. Scott
Publisher: Cengage Learning
ISBN: 9781305084087
BuyFind

College Accounting (Book Only): A ...

12th Edition
Cathy J. Scott
Publisher: Cengage Learning
ISBN: 9781305084087

Solutions

Chapter
Section
Chapter 8, Problem 1PA
Textbook Problem

Mooney Labs had the following payroll for the week ended February 28:

Chapter 8, Problem 1PA, Mooney Labs had the following payroll for the week ended February 28: Assumed tax rates are as

Assumed tax rates are as follows:

  1. a. FICA: Social Security (employer) 6.2 percent (0.062) and (employee) 6.2 percent (0.062) on the first $113,700 for each employee and Medicare, 1.45 percent (0.0145) on all earnings for each employee.
  2. b. State unemployment tax, 5.4 percent (0.054) on the first $7,000 for each employee.
  3. c. Federal unemployment tax, 0.6 percent (0.006) on the first $7,000 for each employee.

Required

Record the following entries in general journal form:

  1. 1. The payroll entry as of February 28.
  2. 2. The entry to record the employer’s payroll taxes as of February 28 assuming that the total payroll is subject to the FICA taxes (combined Social Security and Medicare) and that $5,490 is subject to unemployment taxes.
  3. 3. The payment to the employees on March 2. (Assume that the company has transferred cash to Cash—Payroll Bank Account for this payroll.)

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Chapter 8 Solutions

College Accounting (Book Only): A Career Approach
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