Question

Required information Use the following information for the Exercises below The following information applies to the questions displayed below. BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $118,500 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 2.9% of the first $7,000 paid to its employee a. b. C. Gross Pay through August $5,400 Gross Pay for September $2,400 3,000 8,900 19,100 113,100 Exercise 11-7 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. (Round your answers to 2 decimal places.) September earnings subject to tax Employer Payroll taxes Tax Rate Tax Amount 0.00

Answer 1

Employer Payroll taxes	September earnings subject to tax	Tax Rate	Tax Amount
FICA-Social Security	2400	6.20%	148.8
FICA-Medicare	2400	1.45%	34.8
FUTA	1600	0.60%	9.6
SUTA	1600	2.90%	46.4
Total Payroll Taxes Expense			239.6
Date	General Journal	Debit	Credit
Sep. 30	Payroll taxes expense	239.6
	FICA—Social security taxes payable		148.8
	FICA—Medicare taxes payable		34.8
	Federal unemployment taxes payable		9.6
	State unemployment taxes payable		46.4