liability.xlsx - Liability 1 Payroll accounting Assume that...

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Liability 1. Payroll accounting. Assume that the following tax rates and payroll information pertain to Brookhav • Social Security taxes: 4% on the first $55,000 earned per employee • Medicare taxes: 1.5% on the first $130,000 earned per employee • Federal income taxes withheld from wages: $7,500 • State income taxes: 4% of gross earnings • Insurance withholdings: 1% of gross earnings • State unemployment taxes: 5.4% on the first $7,000 earned per employee • Federal unemployment taxes: 0.8% on the first $7,000 earned per employee a. Prepare the necessary entry to record Brookhaven’s February payroll. The entry will include deducti • Social Security taxes • Medicare taxes • Federal income taxes withheld • State income taxes • Insurance withholdings b. Prepare the journal entry to record Brookhaven’s payroll tax expense. The entry will include the follo • Matching Social Security taxes • Matching Medicare taxes • State unemployment taxes • Federal unemployment taxes WORKING Salary 50,000 • Social Security taxes 4.0% 2,000 • Medicare taxes 1.5% 750 • Federal income taxes withheld 7,500 • State income taxes 4.0% 2,000 • Insurance withholdings 1.0% 500 • State unemployment taxes: 5.4% 2,700 • Federal unemployment taxes: 0.8% 400 a. Prepare the necessary entry to record Brookhaven’s February payroll. The entry will include deduc Date Particular Debit Credit Salary Expense 50,000 Social Security taxes 2,000
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