Using the data in situation (a) of Exercise 11-7, prepare the employer’s September 30 journal entry to record the employer’s payroll taxes expense and its related liabilities. Round amounts to cents.
Data From Exercise 11-7
BMX Company has one employee.
FICA Social Security taxes are 6.2% of the first $137,700 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.
Compute BMX’s amounts for each of these four taxes as applied to the employee’s gross earnings for September under each of three separate situations (a), (b), and (c). Round amounts to cents.
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