Question

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 $70 for this pay period. (Round your answers to 2 decimal places.)

Answer 1

Sep 30

DR Salaries expense $700

CR FICA—Social Security taxes payable $43.40

CR FICA—Medicare taxes payable $10.15

CR Employee federal income taxes payable $70

CR Salaries payable $576.45

Step-by-step explanation:

FICA—Social Security taxes payable

6.2% of the first $118,500

= 6.2% * 700

= $43.40

FICA—Medicare taxes payable

1.45% of gross pay

= 1.45% * 700

= $10.15