YellowCard Company's payroll for September 2013 is as follows. Total payroll was $470,400, of which $153,700 is exempt from Social Security tax because it represented amounts paid in excess of $106,800 to certain employees. The amount paid to employees in excess of $7,000 was $391,700. Income taxes in the amount of $88,780 were withheld, as well as $8,830 in union dues. The state unemployment tax is 3.5%, but the state allows YellowCard Company a 2.3% credit for your unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee's wages up to $106,800 and 1.45% in excess of $106,800. No YellowCard employee earns more than $125,000. The federal unemployment tax rate is 0.8% after the state credit.

Prepare the necessary journal entries if (a) wages and salaries paid (5 lines) and (b) employer payroll taxes are recorded separately (4 lines).

(Round answers to 0 decimal places, for example, 5275. If no entry is required, select "No Entry" for account titles and enter 0 for amounts. Credit account titles are automatically indented when the number is entered. amount. Do not manually bleed). No. Account titles and explanation Debit Credit (a) (b)

Answer rating: 100% (QA)

a Journal Entries for Wages and Salaries Paid Wages and Salaries Expense 470400 Cash 470400 Social S... View the full answer