Question

Diablo's Mexican Restaurant incurred salaries expense of S66,000 for 2018. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $21,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, S2,500), life insurance (cost to the company, $340), and retirement benefits (cost to the company, 7% of salaries expense) i (Click the icon to view payroll tax rate information.) Read the requirements Requirement 1. Joumalize Diablo's expenses for employee benefits and for payroll taxes. Explanations are not required. Begin with the entry to accrue Diablo's employer payroll taxes. (Round all amounts to the nearest cent. Record debils first, then credits. Exclude explanations from journal entries.) Dato Accounts Debit Credit More Info For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee OASDI: 6.2% on first $118,500 eamed; Medicare: 1.45% up to $200,000, 2.35 % on eanings above S200,000 Employer: OASDI: 6.2% on first $118,500 eamed per employee; Medicare: 1.45% on all earnings; FUTA: 0.6 % on first $7,000 earned per employee; SUTA: 54 % on first S7.,000 eamed per employee. Print Done Choose from any list or enter any number in the Input flelds and then click Check Answer. parts 2 remaining Clear All Check Answer

Answer 1

B Rate 6.20% 1.45% 0.60% 5.40% Earning subject to $66,000 $66,000 $21,000 $21,000 2 FICA - OASDI 3 FICA - Medicare 4 FUTA 5 SUTA 6 Health Insurance 7 Life Insurance 8 Retirement Benefits 9 Total Payroll Expense Amount $4,092 $957 $126 $1,134 $2,500 $340 $4,950 $14,099 | 7.50% $66,000

JK Date 1 Journal Entries Account Titles Payroll Tax Expense FICA - OASDI Payable FICA - Medicare Payable FUTA Payable SUTA Payable (To record the payroll tax expense) Employee Benefits Expense Health Insurance Payable Life Insurance Payable Retirement Benefits Payable (To record the employee benefits expense) Debit ($) Credit (S) $6,309 $4,092 $957 $126 $1,134 2 $7,790 $2,500 $340 $4,950 14

If you have any doubts ask in comment section

Do rate the answer