Using the data in situation (a) of Exercise 11-7, prepare the employer’s September 30 journal entry to record the employer’s payroll taxes expense and its related liabilities. Round amounts to cents.

Data From Exercise 11-7

BMX Company has one employee. 

FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and 

FICA Medicare taxes are 1.45% of gross pay. For BMX, its 

FUTA taxes are 0.6% and 

SUTA taxes are 5.4% of the first $7,000 paid to its employee. 

Compute BMX’s amounts for each of these four taxes as applied to the employee’s gross earnings for September under each of three separate situations (a), (b), and (c). Round amounts to cents.

Transcribed Image Text:

Gross Pay through August 31 Gross Pay for September $ 6,400 $ 800 а. b. 2,000 2,100 C. 131,400 8,000