Computation of taxes Factory Salaries and wages 130500 Social security taxes

Computation of taxes factory salaries and wages

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Computation of taxesFactorySalaries and wages$130,500Social security taxes (FICA)9,983(7.65% × $130,500)Federal unemployment taxes (FUTA)296(0.8% × $37,000)State unemployment taxes (SUTA)925(2.5% × $37,000)Total Cost$141,704SalesSalaries and wages$34,000Social security taxes (FICA)1,330*Federal unemployment taxes (FUTA)29(0.8% × $3,600)State unemployment taxes (SUTA)90(2.5% × $3,600)Total Cost$35,449*$13,500 × 7.65% = $1,033; $20,500 × 1.45% = $297; $1,033 + $297 = $1,330AdministrativeSalaries and wages$38,300Social security taxes (FICA)2,930(7.65% × $38,300)Federal unemployment taxes (FUTA)0State unemployment taxes (SUTA)0Total Cost$41,230
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*(b)Your answer is correct.Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer’s payroll taxes. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,125.)Account Titles and ExplanationDebitCreditFactory Payroll:Salaries and Wages Expense130500FICA Taxes Payable9983Withholding Taxes Payable15700Cash104817(To record salaries and wages expense.)Payroll Tax Expense11204FICA Taxes Payable9983FUTA Taxes Payable296SUTA Taxes Payable925(To record payroll tax expense.)Sales Payroll:Salaries and Wages Expense34000Withholding Taxes Payable7100FICA Taxes Payable1330Cash25570(To record salaries and wages expense.)Payroll Tax Expense1449FICA Taxes Payable1330FUTA Taxes Payable29SUTA Taxes Payable90(To record payroll tax expense.)Administrative Payroll:Salaries and Wages Expense38300
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Withholding Taxes Payable6000FICA Taxes Payable2930Cash29370(To record salaries and wages expense.)Payroll Tax Expense2930FICA Taxes Payable2930(To record payroll tax expense.)Attempts: 2 of 3 used
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