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College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

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Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

Liu’s Lounge had the following payroll taxes expense for the week ended February 10, 20--:

Social Security $595.20
Medicare 139.20
FUTA 76.80
SUTA 518.40

Prepare the journal entry for these payroll taxes.

To determine

Prepare journal entry to record the payroll taxes.

Explanation

Payroll tax:

Payroll tax refers to the tax that are equally contributed by employees and employer based on the salary and wages of an employee. Payroll tax includes taxes like federal tax, local income tax, state tax, social security tax and federal and state unemployment tax.

Prepare journal entry to record the payroll taxes.

DateAccount Title and explanationPost. refDebit ($)Credit ($)
February 10Payroll tax expense 1,329.60 
 FICA-Social Security taxes payable  595.20
 FICA-Medicare Taxes payable  139.20
 FUTA tax payable  76.80
 SUTA tax payable  518...

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