Diegos Mexican Restaurant incurred salaries expense of $70,000 for 2016. The payroll expense includes employer FICA tax,

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Diego’s Mexican Restaurant incurred salaries expense of $70,000 for 2016. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $13,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,700), life insurance (cost to the company, $380), and retirement benefits (cost to the company, 10% of salaries expense). Journalize Diego’s expenses for employee benefits and for payroll taxes. Explanations are not required.
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Horngrens Financial and Managerial Accounting

ISBN: 978-0133866292

5th edition

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

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