McLaughlin Manufacturing has the following data available for its March 31, 2009, payroll: Wages earned ...............$366,000* Federal
Question:
McLaughlin Manufacturing has the following data available for its March 31, 2009, payroll:
Wages earned ...............$366,000*
Federal income tax withheld ........ 91,800
State income tax withheld ......... 8,600
* All subject to Social Security and Medicare matching and withholding at 6.2% and 1.45%, respectively.
Federal unemployment tax at 3.2 percent is payable on wages of $7,000, and state unemployment tax at 3.0 percent is payable on the same amount of wages.
Required:
Compute the taxes payable and wages that will be paid to employees. Then prepare the journal entries to record the wages earned and the payroll taxes.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-0324787351
1st Edition
Authors: Rich Jones, Mowen, Hansen, Heitger
Question Posted: