Please help and read thoroughly and follow instructions and complete the incomplete blank spaces that need to be filled in. Thank you! 2. (part 1 of 3) The following information applies to the questions displayed below.] 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. Gross Pay through August 31 Gross Pay for September a. $ 5,300 a $2,600 b. 2,800 b $2,900 c. 132,200 c $8,800 Compute BMXs amounts for each of these four taxes as applied to the employees gross earnings for September under each of three separate situations (a), (b), and (c). (Round your answers to 2 decimal places.) a)

Tax	September Earning Subject to Tax	Tax Rate	Tax Amount
FICA--Social Security	$2,600.00	6.20%	$161.20
FICA--Medicare	$2,600.00	1.45%	37.70
FUTA		0.60%
SUTA		5.40%

b)

Tax	September Earning Subject to Tax	Tax Rate	Tax Amount
FICA--Social Security	$2,900.00	6.20%	$179.80
FICA--Medicare	$2,900.00	1.45%	42.05
FUTA
SUTA

c)

Tax	September Earning Subject to Tax	Tax Rate	Tax Amount
FICA--Social Security
FICA--Medicare	$8,800.00	1.45%	127.60
FUTA
SUTA

3. (part 2 of 3) Assuming situation (a), prepare the employers September 30 journal entry to record salary expense and its related payroll liabilities for this employee. The employees federal income taxes withheld by the employer are $70 for this pay period. Taxes to be Withheld From Gross Pay The employees federal income taxes withheld by the employer are $70 for this pay period. Assuming situation (a), compute the taxes to be withheld from gross pay for this employee. (Round your answers to 2 decimal places.) Taxes to be Withheld from Gross Pay (Employee Paid Taxes)

	September Earnings Subject to Tax	Tax Rate	Tax Amount
Federal Income Tax			$70.00

General Journal Assuming situation (a), prepare the employers September 30 journal entry to record salary expense and its related payroll liabilities for this employee. The employees federal income taxes withheld by the employer are $70 for this pay period. (Round your answers to 2 decimal places.) Prepare the employer's September 30 journal entry to record accrued salary expense and its related payroll liabilities for this employee.

Date	General Journal	Debit	Credit
September 30

4. (part 3 of 3) Assuming situation (a), prepare the employers September 30 journal entry to record the employers payroll taxes expense and its related liabilities. Payroll Taxes Expense Assuming situation (a), compute the payroll taxes expense. (Round your answers to 2 decimal places.)

Employer Payroll Taxes	September Earnings Subject to Tax	Tax Rate	Tax Amount

General Journal Prepare the employers September 30 journal entry to record the employers payroll taxes expense and its related liabilities. (Round your answers to 2 decimal places.)

Date	General Journal	Debit	Credit
September 30

5. Hitzu Company sold a copier (that costs $6,500) for $13,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 4% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $96 for materials taken from the parts inventory. These are the only repairs required in Year 2 for this copier. Required 1 to 3 1. How much warranty expense does the company report for this copier in Year 1? 2. How much is the estimated warranty liability for this copier as of December 31 of Year 1? 3. How much is the estimated warranty liability for this copier as of December 31 of Year 2? 4. Prepare journal entries to record (a) the copiers sale; (b) the adjustment to recognize the warranty expense on December 31 of Year 1; and (c) the repairs that occur on January 5 of Year 2.

1. Warranty Expense
2. Estimated Warrant Liability as of December 31 of Year 1
3. Estimated Warrant Liability as of December 31 of Year 2

Required 4 Prepare journal entries to record (a) the copiers sale; (b) the adjustment to recognize the warranty expense on December 31 of Year 1; and (c) the repairs that occur on January 5 of Year 2.

1)

Date	General Journal	Debit	Credit
August 16

2) Record the cost of goods sold of $6,500.

Date	General Journal	Debit	Credit
August 16

3) Record the estimated warranty expense at 4% of the sales.

Date	General Journal	Debit	Credit
December 31

4) Record the cost of repairs that occur on January 5 of Year 2.

Date	General Journal	Debit	Credit
January 05