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College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

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BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

Selected columns of Envirocon Company’s payroll register for March are as follows. The employer’s Social Security tax amount has already been calculated as $3,124.34. The employees’ FICA Medicare tax rate is matched by the employer.

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Envirocon Company deposits taxes monthly. In general journal form, record the entry for the April 15 payment of FICA and federal income taxes for employees and employer.

To determine

Prepare journal entry to record the given transaction.

Explanation

Payroll:

Payroll refers to the total amount that is required to be paid by the company to its employees during a week, month or other period. It is the financial record of the wages and bonus, net pay, salary and deductions of a company’s employees.

Prepare journal entry to record the given transaction.

DateAccount Title and explanationDebit ($)Credit ($)
April 15Employee federal income tax payable5,117.00 
  FICA-Social Security taxes payable ($3,124.34+$3,124.34s)  6,248.68 
 FICA-Medicare Taxes payable ($494

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