Question

Berry Company has monthly salaries of $20,000. Assume Berry pays all the standard payroll taxes, no employees have reached the payroll tax limits, tatal income tax withheld is $2,000, and the only payroll deductions are payroll taxes. Journalize the accrual of salaries expense, accrual of emplayer payroll taxes, and payment of employee and employer payroll taxes for Berry Company. (Assume all of the manthly salary is subject to FUTA and SUTA. Recard debits first, then credits. Select the explanation on the last line of the journal entry table.) (Click the icon to view payroll tax rate information.) Begin with the entry to accrue salaries expense and payrall withholdings for the employee. Accounts and Explanation Date Debit Credit Salaries Expense 20,000 FICA-OASDI Taxes Payable 1,240 FICA-Medicare Taxes Payable 290 Employee Incormе Tахев Раyable 2.000 Salaries Payable 16,470 TO record salaries expense and payrol withhoidings Next, record the entry to accrue employer payroll taxes for Berry Company Date Accounts and Explanation Credit Debit |Рayroll Tax Experве 2,730 FICA-OASDI Taxes Payable 1,240 FICA-Medicare Taxes Payable 290 Federal Unemplayment Taxes Payable 120 State Unemployment Taxes Payable 1,080 TO record employer's payroil tax expense. Now record the payment of employee and employer payroll taxes for Berry Company Accounts and Explanation Credit Date Debit FICA-OASDI Taxes Payable FICAMedicare Тахен Рауable Emplayee Income Taxes Payable 2.000 Federal Unemployment Taxes Payable 120 1,080 State Unemplayment Taxes Payable Cash Fayment of payroll taxes - X More Info Far all payroll calculations, use the following tax rates and round amounts to the nearest cent OASDI: 6.2% on first $118,500 eamed; Medicare: 1.45 % up to $200,000, 2.35% an earnings above $200,000. OASDI: 6.2% on first $118,500 eamed; Medicare: 1.45 % on all earnings FUTA: 0.8% on first $7,000 earned; SUTA: 5.4 % an first $7,000 earned Employee Employer Choose Print Done All par Check Answer

Answer 1

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First two entries are correct, missing amount have been answered in yellow: Solution: Date Credit Jounal entries Account title and explaination FICA - OASDI taxes payable (1240+1240) FICA - Medicate taxes payable (290+290) Employee income taxes payable Federal unemployment taxes payable State unemployment taxes payable Cash (Payment of payroll taxes) Debit 2,480 580 2,000 120 1,080 $ $ $ 6,260 Date Credit Debit 16,470 $ Account title and explaination Salaries payable Cash (Payment of employee payroll) $ 16,470