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Kovarik Company had the following payroll for the week ended March 21: 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 $118,500 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 March 21. 2. The entry to record the employer’s payroll taxes as of March 21, assuming that the total payroll is subject to the FICA taxes (combined Social Security and Medicare) and that $4,965 is subject to unemployment taxes. 3. The payment of the employees on March 23. (Assume that the company has transferred cash to Cash—Payroll Bank Account for this payroll.)

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College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
Publisher: South-Western College Pub
ISBN: 9781337280570
BuyFind

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
Publisher: South-Western College Pub
ISBN: 9781337280570

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Chapter
Section
Chapter 8, Problem 1PB
Textbook Problem

Kovarik Company had the following payroll for the week ended March 21:

Chapter 8, Problem 1PB, Kovarik Company had the following payroll for the week ended March 21: 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 $118,500 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 March 21.
  2. 2. The entry to record the employer’s payroll taxes as of March 21, assuming that the total payroll is subject to the FICA taxes (combined Social Security and Medicare) and that $4,965 is subject to unemployment taxes.
  3. 3. The payment of the employees on March 23. (Assume that the company has transferred cash to Cash—Payroll Bank Account for this payroll.)

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