Question

Elize’sregular hourly wage is $16, and she receives an hourly rate of $24 for work in excess of 40 hours. During a January pay period, Betsy works 47 hours. Betsy's federal income tax withholding is $95, and she had no voluntary deductions. assume that the fica tax rate is 7.65%. prepare the employer's journal entry to record payroll taxes for the period.

Prepare the employer's journal entry to record payroll taxes for the period. Ignore unemployment taxes.
Jan 15.
Payroll Tax Expense - Debit $61.81
FICA Taxes Payable - Credit $61.81

Answer 1

Answer:n Please see explanation column for answer

Step-by-step explanation:

Betsy's pay for the period

Jan. 15

Salaries and Wages Expense - Debit $808 which is gotten from (40 hours x$16) + (rem 7 hours x24) = $808

Federal Income taxes Payable - Credit $95

FICA Taxes Payable - Credit $61.81 gotten from 7.65% of $808= $61.81

Salaries and Wages Payable - Credit $651.19 which is gotten from $808- ( $61.81 + $95 ) = $651.19

b) Payment of Betsy's wages

Jan. 15

Salaries and Wages Payable - Debit $651.19

Cash - Credit $651.19

The journal entry to record payroll taxes is given below;

Jan 15.

Payroll Tax Expense - Debit $61.81

FICA Taxes Payable - Credit $61.81