Chapter 13 Current Liabilities and Contingencies

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The payroll of Concord Company for September 2016 is as follows. Total payroll was $444,000, of which $100,000 is exempt from Social Security tax because it represented amounts paid in excess of $118,500 to certain employees. The amount paid to employees in excess of $7,000 was $404,000. Income taxes in the amount of $87,100 were withheld, as was $9,500 in union dues. The state unemployment tax is 3.5%, but Concord Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employees wages to $118,500 and 1.45% in excess of $118,500. No employee for Concord makes more than $125,000. The federal unemployment tax rate is 0.8% after state credit. Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately.

Your answer is partially correct. Try again. The payroll of Concord Company for September 2016 is as follows. Total payroll was $444,000, of which $100,000 is exempt from Social Security tax because it represented amounts paid in excess of $118,500 to certain employees. The amount paid to employees in excess of $7,000 was $404,000. Income taxes in the amount of $87,100 were withheld, as was $9,500 in union dues. The state unemployment tax is 3.5%, but Concord Company is allowed a credit of 2.3% by the state for its unemployment experience. Also assume that the current FICA tax is 7.65% on an employee's wages to $118,500 and 1.45% in excess of $118,500. No employee for Concord makes more than $125,000. The federal unemployment tax rate is 0.8% after state credit. Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and ExplanationDebit Credit Salaries and Wages Expens 44,000 87,100 27,766 9,500 319,634 ithholding Taxes Payabl FICA Taxes Payabl nion Dues Payable (To record wages and salaries paid) roll Tax Expens 29,131 27,766 FICA Taxes Payabl FUTA Taxes Payabl SUTA Taxes Payabl (To record employer payroll taxes) 1,045