l Hele I Contact Us PLUS Kieso Intermediate Accounting 16e I

l Hele I Contact Us PLUS Kieso, Intermediate Accounting, 16e INTERMEDIATE ACCOUNTING (CONT 3007 CALCULATOR ? (STANDARD VIEW PRINTTA VERS?ON \"BACK Exercise 13-6 The payroll of Larkspur Company for September 2016 is as follows. e 13-1 Total payroll was $458,000, of which $110,000 is exempt from Social Security tax because it represented amounts paid in excess of $118,500 to certain employees. The amount paid to employees in excess of $7,000 was $363,000. Income taxes in the amount of $81,800 were withheld, as was $9,300 in union dues. The state unemployment tax is 3.5%, but Larkspur Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee\'s wages to sit 8,500 and 1.45% in excess of nesoo. No employee for Larkspur makes more than $125,000. The federal unemployment tax rate is 0.8% after state credit. e 13-3 e 13-11 Prepare the necessary journal entres if the wages and salaries paid and the employer payroll taxes are recorded separately. (Round answers to? decimal places, e.g. S,275. I no entry is required, select \"No Entry\" for the account titles and enter O for the amounts Credit account titles are automatically Indented when amount is entered. Do not indent manually) e 13-15 Account Titles and Explanation Debit Credit (To record wages and salaries paid) eyplus.com/edugenýshared/assignment/test/aglist.unit 4

Solution

Date Particulars Debit Credit (a) Salaries and Wages Expense $ 4,58,000 Withholding Taxes Payable $     81,800 FICA Taxes Payable (W.N.1) $     35,791 Union Dues Payable $       9,300 cash $ 3,31,110 (To record Wages and Salaries paid) (b) Payroll taxes Expenses $     37,691 FICA Taxes Payable (W.N.1) $     35,791 FUTA taxes Payable (W.N.2) $           760 SUTA Taxes Payable (W.N.3) $       1,140 (To record Employer Payroll Taxes) Working Notes 1 FICA Taxes Payable = [($4,58,000 - $1,10,000) X 7.65%] + ($1,10,000 X 1.45%) = $35,791 2 FUTA taxes Payable = ($4,58,000 - $3,63,000) X 0.8% = $760 3 SUTA Taxes Payable = ($4,58,000 - $3,63,000) X (3.5% - 2.3%) = $1,140