Final 3 - 400,000 Withholding taxes payable (federal income...

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Question 3 Needs Grading Muller Corp.  pays its  employees  monthly. The  payroll  information  listed below is  for January,  2011, the first  month of  Muller's fiscal  year. Salaries 400,000 Federal  income taxes  to be withheld  80,000 Federal  unemployment  tax rate     .80% State  unemployment  tax rate (after  FUTA)   5.4% Social security  tax rate  (OASDI)     6.2% Medicare tax 
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rate   1.45% Required : Prepare the  appropriate  journal entries  to record  salaries expen se and payroll  tax expense  for the  January 2011  pay period. Problem #3: General Journal Date Account Dr Cr Salaries and wages expense  (total amount earned)
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Unformatted text preview: 400,000 Withholding taxes payable (federal income tax) 80,000 Social security taxes payable ( $400,000 x 6.2%) 24,800 Medicare taxes payable ($400,000 x 1.45%) 5,800 Salaries and wages payable (net pay) 289,400 Payroll tax expense (total) 55,400 Social security payable (employers matching amount) 24,800 Medicare taxes payable (employers matching amount) 5,800 Federal Unemployment tax payable ($400,000 x 0.8%) 3,200 State Unemployment tax payable ($400,000 x 5.4%) 21,600...
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This note was uploaded on 02/29/2012 for the course INTERMEDIA 301 taught by Professor ?? during the Spring '12 term at Post.

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Final 3 - 400,000 Withholding taxes payable (federal income...

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