Kashi Sales, L.L.C. , produces healthy, whole-grain foods such as breakfast cereals, frozen dinners, and granola bars.
Question:
Federal and state income tax withheld ......................................... $125,000
Health insurance premiums (Blue Cross) paid by employer ................ 12,000
Contribution to retirement plan (Fidelity) paid by employer ................ 50,000
FICA tax rate (Social Security and Medicare) ................................ 7.65%
Federal and state unemployment tax rate ..................................... 6.20%
Assume that Kashi has paid none of the withholdings or payroll taxes by the end of January (record them as payables).
Required:
1. Record the employee salary expense, withholdings, and salaries payable.
2. Record the employer-provided fringe benefits.
3. Record the employer payroll taxes.
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Related Book For
Financial Accounting
ISBN: 9780078110825
2nd Edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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