Journalize the following items below. a. Mary works for Madison Co. For the month ended April 30,
Question:
Journalize the following items below.
a. Mary works for Madison Co. For the month ended April 30, she earned $5,000. FICA taxes are 7.65%, state income taxes to be withheld totaled $180.00. Federal income taxes withheld totaled $265.00. Her health insurance is $15. Mary also contributes 8% to her retirement account..
Prepare the journal entry to record Mary’s earnings.
b. Madison Co. pays $250 per month for Mary’s health insurance, $20 per month for disability insurance for Mary, and they match Mary’s contribution to her retirement account. Assume Mary has not yet earned $7000 and thus Madison owes unemployment taxes on all of her earnings.
Prepare the journal entry to record Madison Co.’s employee benefits expense and payroll tax expenses.
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta