Question

VOC LIE IUIIUVIII III IITTALIUII IVI LIE LAEI LIDEO WEIUV. (The following information applies to the questions displayed below.] BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $128,400 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, Its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. a. Gross Pay through August 31 $ 6,600 2,100 122,300 Gross Pay for September $ 500 2,200 8,200 b. Exercise 9-7 Payroll-related journal entries LO P3 Assuming situation (a), prepare the employer's September 30 Journal entries to record the employer's payroll taxes expense and its related liabilities. Complete this question by entering your answers in the tabs below. Payroll Taxes Expense General Journal Compute the payroll taxes expense. (Round your answers to 2 decimal places.) Employer Payroll taxes September earnings subject to tax Tax Rate Tax Amount

Answer 1

Employer Payroll taxes	September earnings subject to tax	Tax Rate	Tax Amount
FICA-Social Security	500	6.20%	31.00
FICA-Medicare	500	1.45%	7.25
FUTA	400	0.60%	2.40
SUTA	400	5.40%	21.60
Total Payroll Taxes Expense			62.25
Date	General Journal	Debit	Credit
Sep. 30	Payroll taxes expense	62.25
	FICA—Social security taxes payable		31.00
	FICA—Medicare taxes payable		7.25
	Federal unemployment taxes payable		2.40
	State unemployment taxes payable		21.60
Note: Earnings taxable for FUTA and SUTA in (a) = 7000-6600 = $400