Question

The payroll of Bramble Company for September 2019 is as follows.

Total payroll was $440,000, of which $102,000 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 $404,000. Income taxes in the amount of $79,400 were withheld, as was $8,700 in union dues. The state unemployment tax is 3.5%, but Bramble 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 Bramble 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 0 for the amounts .Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

Answer 1

Answer S.no. Account litter and Explanation (bebit Credits a. wages and salaries Expense Alc- --Dr 440000 To withhold taxes payabler To FICA Taxas payable 79400 27336 To anion bues payable Cash (balance figure) 324564 FICA taxes. [14900 - 102000]*7.55% + 1.200 x 1.4571 5857 + 1479} 82585 $ 27336 b- Payroll tax expense Alc (balance figuze) D7 28056 27336 FICA tax payable To Federal un Employment tax Payable Alco.co 238 (44900 - 4040e) x 0:34] To State unemployment tax payable Alc. 68 432 490.00 - 40400] x (3.5%-2:37) Thank you please rate if it is helpful to you