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Homework answers / question archive / Required information Use the following information for the Exercises below

Required information Use the following information for the Exercises below

Accounting

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 $128,400 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.   $ 6,400         $ 800    
b.     2,000           2,100    
c.     122,100           8,000    
 

Exercise 9-6 Payroll-related journal entries LO P2

Assuming situation (a), prepare the employer’s September 30 journal entries to record salary expense and its related payroll liabilities for this employee. The employee’s federal income taxes withheld by the employer are $80 for this pay period.

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