The payroll of Sunland Company for September 2019 is as follows. Total payroll was $454,000, of...

 

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The payroll of Sunland Company for September 2019 is as follows. Total payroll was $454,000, of which $122,000 is exempt from Social Security tax because it represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 (the maximum for both federal and state unemployment tax) was $399,000. Income taxes in the amount of $73,400 were withheld, as was $9.800 in union dues. The state unemployment tax is 3.5%, but Sunland Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee's wages to $128,400 and 1.45% in excess of $128,400. No employee for Sunland makes more than $135,000. The federal unemployment tax rate is 0.8% after state credit. Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Salaries and Wages Expense Withholding Taxes Payable (To record wages and salaries paid) Debit 454000 UT Credit DO (c) (To record discount on the note) eTextbook and Media List of Accounts Save for Later Last saved 20 hours ago. Compute the total net liability to be reported on the December 31 balance sheet for: (1) The interest-bearing note (2) The zero-interest-bearing note $ eTextbook and Media List of Accounts $ Save for Later Attempts: 4 of 5 used Attempts: 0 of 5 used Submit Answer Submit Answer The payroll of Sunland Company for September 2019 is as follows. Total payroll was $454,000, of which $122,000 is exempt from Social Security tax because it represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 (the maximum for both federal and state unemployment tax) was $399,000. Income taxes in the amount of $73,400 were withheld, as was $9.800 in union dues. The state unemployment tax is 3.5%, but Sunland Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee's wages to $128,400 and 1.45% in excess of $128,400. No employee for Sunland makes more than $135,000. The federal unemployment tax rate is 0.8% after state credit. Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Salaries and Wages Expense Withholding Taxes Payable (To record wages and salaries paid) Debit 454000 UT Credit DO (c) (To record discount on the note) eTextbook and Media List of Accounts Save for Later Last saved 20 hours ago. Compute the total net liability to be reported on the December 31 balance sheet for: (1) The interest-bearing note (2) The zero-interest-bearing note $ eTextbook and Media List of Accounts $ Save for Later Attempts: 4 of 5 used Attempts: 0 of 5 used Submit Answer Submit Answer

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Recording of Employee Wages and Salaries Debit Wages and Salaries Expense 454000 Credit CashBank 454... View the full answer