Record the two necessary payroll-related journal entries for Frank's Fuel Corp: one for employee withholdings and one
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Question:
Record the two necessary payroll-related journal entries for Frank's Fuel Corp: one for employee withholdings and one for employer payroll taxes.
For the current week:
- Gross salaries: $1,200
- Federal income tax withheld: $114
- State income tax withheld: $44
- The applicable SUTA and FUTA tax rates are 5.4% and 0.6%, respectively.
- No single employee has, to date, reached the threshold for Social Security, FUTA, or SUTA tax.
- Union dues withheld: $55
- Enter all debits within the transaction prior to entering any credits.
- To earn any credit for a given line within the journal entry, the account name must be correct. Partial credit is given for a correct account name with an incorrect amount; full credit is given for a correct account name with the correct amount.
- Do not include journal entry explanation when submitting your answer.
- It may not be necessary to use all visible rows to record each journal entry.
- Record journal entries in the order in which the transactions are presented.
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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