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BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $132,900...

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Accounting

BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $132,900 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.

Gross Pay through August 31 Gross Pay for September
a. $ 5,100 $ 2,200
b. 2,600 2,700
c. 127,200 8,600

Exercise 9-9 (Algo) Payroll-related journal entries LO P3

Assuming situation (a), prepare the employers September 30 journal entry to record the employers payroll taxes expense and its related liabilities.

Employer Payroll taxes September earnings subject to tax Tax Rate Tax Amount

Journal entry worksheet

  • Record the employer's September 30 payroll taxes expense and its related liabilities.

Note: Enter debits before credits.
Date General Journal Debit Credit
Sep 30

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