60.1K

Verified Solution

Link Copied!

Penn State has 5 professors, cach of whom eams $6,000 per month and is paid on the last working day of the month. Each employee's wages are subject to FICA social security taxes of 6.2% and Medicare taxes of 1.45% on all wages. Withholding for each employee also includes federal income tax of 15% and monthly medical insurance premiums of $150 for each employee a. Prepare the general journal entry to accrue the monthly salaries expense at January 31. b. The employer payroll taxes for Penn State include FICA taxes, federal unemployment taxes of 0.8% of the first $7,000 paid each employee, and state unemployment taxes of 3.5% of the first $10,000 paid to each employee. Prepare the journal entry to record the employer's payroll taxes at January 31 for Penn State. (Assume that none of the employees has reached the unemployment limit of $7,000.) Date Account Titles Debit Credit 7 Penn State has 5 professors, each of whom earns $6,000 per month and is paid on the last working day of the month. Each employee's wages are subject to FICA social security taxes of 6.2% and Medicare taxes of 1.45% on all wages. Withholding for each employee also includes federal income tax of 15% and monthly medical insurance premiums of $150 for each employee. a. Prepare the general journal entry to accrue the monthly salaries expense at January 31. b. The employer payroll taxes for Penn State include FICA taxes, federal unemployment taxes of 0.8% of the first $7,000 paid each employee, and state unemployment taxes of 3.5% of the first $10,000 paid to each employee. Prepare the journal entry to record the employer's payroll taxes at January 31 for Penn State. (Assume that none of the employees has reached the unemployment limit of $7,000.) Debit Credit Date Account Titles

Answer & Explanation Solved by verified expert

See Answer