Current Attempt in Progress Total payroll of Ivanhoe Co. was $1,870,000, of which $340,000 represented amounts...

Transcribed Image Text:

Current Attempt in Progress Total payroll of Ivanhoe Co. was $1,870,000, of which $340,000 represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 was $1,350,000. Income taxes withheld were $463,000. The state unemployment tax is 1.2%, the federal unemployment tax is .8%, and the F.I.C.A. tax is 7.65% on an employee's salaries and wages to $128,400 and 1.45% in excess of $128,400. (a) Prepare the journal entry for the salaries and wages paid. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Current Attempt in Progress Total payroll of Ivanhoe Co. was $1,870,000, of which $340,000 represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 was $1,350,000. Income taxes withheld were $463,000. The state unemployment tax is 1.2%, the federal unemployment tax is .8%, and the F.I.C.A. tax is 7.65% on an employee's salaries and wages to $128,400 and 1.45% in excess of $128,400. (a) Prepare the journal entry for the salaries and wages paid. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit

Answer rating: 100% (QA)

Solution Date calculation of FICA 1870000 3400003 x 765 117045 340000 1453 Joumal entrie... View the full answer