Question

3. Jackson Phillips works for Peterson Company all year and earns a monthly salary of $4,200. There is no overtime pay. Based on Jackson's W-4, Peterson withholds income taxes at 10% of his gross pay. As of July 31, Jackson had $29,400 of cumulative earnings. (Click the icon to view payroll tax rate information.) Journalize the accrual of salary expense for Peterson Company related to the employment of Jackson Phillips 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 journal entry table.) Date Accounts and Explanation Debit Credit More Info 4,200.00 420.00 Salaries Expense Employee Income Taxes Payable FICA-OASDI Taxes Payable FICA-Medicare Taxes Payable Salaries Payable 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: 1.45% up to $200,000, 2.35% on earnings above $200,000. Employer: OASDI: 6.2% on first $118,500 earned; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned; SUTA: 5.4% on first $7,000 earned. To record salaries expense and payroll withholdings. Print Print Done Done

Answer 1

Salaries expense	4200
Employee income taxes payable (4200*10%)		420
Fica - Oasdi taxes payable (4200*6.2%)		260.4
Fica - Medicare taxes payable 4200*1.45%		60.9
Salaries payable		3458.7

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