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Samuel's Mexican Restaurant incurred salaries expense of $ 64,000 for 2018. The payroll expense includes employer FICA​ tax, in addition to state unemployment tax and federal unemployment tax. Of the total​ salaries, $ 15,000 is subject to unemployment tax.​ Also, the company provides the following benefits for​ employees: health insurance​ (cost to the​ company, $ 2,100​), life insurance​ (cost to the​ company, $ 320​), and retirement benefits​ (cost to the​ company, 9​% of salaries​ expense).

Required:
a. Journalize Samuel's expenses for employee benefits and for payroll taxes. Explanations are not required.
b. What was Ricardo's total expense for 2018 related to payroll?

User Aneri
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Answer:

SAMUEL's MEXICAN RESTAURANT

Date Description DR CR

2018 Salaries expenses 64,000

Decduction 15,000

cash 49,000

Employee benefit 8,180

Health insurance 2100

Life Insurance 320

Retirement benefit 5760

Step-by-step explanation:

User Rafaelfranca
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