The following information pertains to a weekly payroll of Texera Tile Company: a. The total wages earned by employees

Question

The following information pertains to a weekly payroll of Texera Tile Company: a. The total wages earned by employees are $17,210. b. The state unemployment insurance contribution rate is 3.5%. c. The entire amount of wages is taxable under FICA, FUTA, and SUTA. d. The amount withheld from the employees' wages for federal income taxes is $1,890; for state income taxes, $369.40; and for group insurance, $193.00. Journalize the payment of wages, and record the payroll taxes for this payroll.

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Journal Entries: S.No. Accounts titles and Explanation Debit ($) Credit ($) 1 Wages Expense 17,210 FICA Taxes Payable-OASDI @6.2% of $17,210 1,067.02 FICA Taxes Payable-HI @1.45% of $17,210 249.55 Employees FIT Payable 1,890.00 Employees SIT Payable 369.4 Group Insurance Premiums Collected 193 Cash 13,441.03 (To record the payment of wages) 2 Payroll Taxes 2,022.18 FICA Taxes Payable-OASDI 1,067.02 FICA Taxes Payable-HI 249.55 FUTA Taxes Payable @0.6% of $17,210 103.26 SUTA Taxes Payable @3.5% of $17,210 602.35 (To record payroll taxes)

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The following information pertains to a weekly payroll of Texera Tile Company: a

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Archived Solution

Journal Entries:
S.No.	Accounts titles and Explanation	Debit ($)	Credit ($)
1	Wages Expense	17,210
	FICA Taxes Payable-OASDI @6.2% of $17,210		1,067.02
	FICA Taxes Payable-HI @1.45% of $17,210		249.55
	Employees FIT Payable		1,890.00
	Employees SIT Payable		369.4
	Group Insurance Premiums Collected		193
	Cash		13,441.03
	(To record the payment of wages)

2	Payroll Taxes	2,022.18
	FICA Taxes Payable-OASDI		1,067.02
	FICA Taxes Payable-HI		249.55
	FUTA Taxes Payable @0.6% of $17,210		103.26
	SUTA Taxes Payable @3.5% of $17,210		602.35
	(To record payroll taxes)