Question: Problem 8. Current Liabilities (4.1 content area) 8.1 During the month of June, Moby Corporation, Inc. had cash sales of $243,624 and credit sales of
Problem 8. Current Liabilities (4.1 content area)
8.1 During the month of June, Moby Corporation, Inc. had cash sales of $243,624 and credit sales of $153,687, both of which include Maine sales tax of 5.5% that must be remitted to the state by July 15th. Note that Moby Corporation did not separate the sales tax from the actual sales when made during the month. They recorded the full amount as sales revenue. Prepare the adjusting journal entry to fairly present the June 30th financial statements.
8.2 The payroll of Moby, Inc. for June 30th is as follows: The total payroll was $150,000. None of the individual wages were greater than $160,200 (social security maximum threshold for 2023). Income taxes withheld from employees totaled $37,500 and union dues withheld was $4,000. Assume FICA tax is 7.65% on employee's wages (6.2% Social Security & 1.45% Medicare tax). Calculate Unemployment tax - .6% FUTA and 5.4% SUTA taxes. No employees have reached the $12,000 Maine maximum wage threshold.
A. Prepare the necessary journal entries for the wages paid on June 30th.
B. Prepare the employer payroll taxes.
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