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Calculation of Taxable Earnings and Employer Payroll Taxes and Preparation of Journal Entry 1. Calculate the amount of taxable earnings for...

I understand how to put the account titles in the right places but I don't understand how to come up with the debit and credits of the general journal. I also can't figure out how to calculate the amount of taxable earnings for unemployment, Social Security, and Medicare taxes. Screen Shot 2018-05-09 at 5.31.54 PM.pngScreen Shot 2018-05-09 at 5.31.38 PM.pngScreen Shot 2018-05-09 at 5.31.24 PM.pngScreen Shot 2018-05-09 at 5.31.10 PM.png

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Calculation of Taxable Earnings and Employer Payroll Taxes and Preparation of Journal Entry
1. Calculate the amount of taxable earnings for unemployment, Social Security, and Medicare taxes. 2. Prepare the journal entry to record the employer's payroll taxes as of September 14, 20--. Round your answers to the nearest cent. If an
amount box does not require an entry, leave it blank. Selected information from the payroll register of Joanie's Boutique for the week ended September 14, 20—-, is as follows. Social Security tax is
5.2% on the first $118,500 of earnings for each employee. Medicare tax is 1.45% of gross earnings. FUTA tax is 0.6% and SUTA tax is 5.4%
on the first $7,000 of earnings. Taxable Earnings Cumulative Pay
Before Current Current Unemployment Social
Employee Name Earnings Gross Pay Compensation Security

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3n the first $7,000 of earnings. Taxable Earnings Cumulative Pay Before Current Current Unemployment Social
Employee Name Earnings Gross Pay Compensation Security
Jordahl, Stephanie $6,560 $1,200
Keesling, Emily 6,250 1,090
Palmer, Stefan 55,030 2,360
Soltis, Robin 54,380 2,320
Stout, Hannah 28,920 2,010 Xia, Xu 108,450 11,150

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1. Calculate the amount of taxable earnings for unemployment, Social Security, and Medicare taxes. Taxable unemployment earnings *' Taxable Social Security earnings Taxable Medicare earnings

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2. Prepare the journal entry to record the employer's payroll taxes as of September 14, 20--. Round your answers to the nearest cent. If an
amount box does not require an entry, leave it blank. Page:
DATE ACCOUNT TITLE DIES FEE? DEBIT CREDIT
1 20" Sept. 14 Payroll taxes expense 1 x C] 1
2 Social Security tax payable 1 C] x 2
3 Medicare tax payable 1 C] X 3
4 FUTA tax payable 1 C] X 4
5 SUTA tax payable 1 C] X 5
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Top Answer

Answer 1) Taxable Unemployement Compensation =1190 Taxable Social Security Earning = 19030 Taxable... View the full answer

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