Question

Question 6 Selected data from a March payroll register for Sure Company are presented below. Some amounts are intentionally omitted Gross earnings: Regular $24,000 State income taxes $(3) Overtime 200 Union dues (1) Total Total deductions Doductions: Net pay $23,540 FICA taxes $2,340 Accounts debited: Federal income taxes 2,000 Salaries/wages expense (2) FICA taxes are 8%. State income taxes are 4% of gross earnings. Instructions (a) Fill in the missing amounts. (b) Journalize the February payroll and the payment of the payroll.

Answer 1

(a)	2. Total gross earnings=FICA taxes/FICA tax rate=2340/8%=$ 29250
	1. Overtime=Total-Regular=29250-24000=$ 5250
	3. State income taxes=Total gross earnings*4%=29250*4%=$ 1170
	4.Total deductions=Total gross earnings-Net pay=29250-23540=$ 5710
	5. Amount debited to salaries/Wages expense=Total gross earnings=$ 29250
(b)	Date	Account titles					Debit	Credit
	XXX	Salaries/Wages expense					29250
		FICA taxes payable						2340
		Federal income taxes payable						2000
		State income taxes payable						1170
		Union dues payable						200
		Salaries/Wages payable						23540
		(February payroll recorded)
	XXX	Salaries/Wages payable					23540
		Cash						23540
		(Payroll paid)
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