Question

3. Tyler Sanders works for Howard Company all year and earns a month y salary of S4.200. T er e is no o e ime pay Base earnings on T ersw.4 o ard withholds come taxes at 1 %ofhis gross pay. As of uly Ty rhad 29, 40 of cumulative (Click the icon to view payroll tax rate information.) Journalize the accrual of salary expense for Howard Company related to the employment of Tyler Sanders for the month of August. (Record debits first, then credits. Round all amounts to the nearest cent. Select the explanation on the last line of the jounal entry table.) Date Accounts and Explanation Debit Credit More Inf For all payroll calculations, use the following tax rates and round amounts to the nearest cent Employee: OASDI: 6.2% on first $118,500 earned; Medicare: 145% up to Employer: OAS DI: 6.2% on first $118,500 earned; Medicare: 145%; FUTA: $200,000, 2.35% on earnings above $200,000 0.6% on first S7,000 earned: SUTA: 5.4% on first $7,000 earned. Print Done

Answer 1

Date		Debit	Credit
	Salaries expense	4200.00
	Employee Income taxes payable		420.00
	FICA-OASDI Taxes Payable		260.40	=4200*6.2%
	FICA-Medicare Taxes Payable		60.90	=4200*1.45%
	Salaries payable		3458.70
	To record salaries expense and payroll withholdings