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Exempt from futa and suta taxes

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Reference no: EM131450922

a. Cal Ruther, an employer, is subject to FICA taxes but exempt from FUTA and SUTA taxes. During the last quarter of the year, his employees earned monthly wages of $8,500, all of which is taxable. The amount of federal income taxes withheld each month is $1,040. Journalize the payment of wages, and record the payroll tax on November 30. For a compound transaction, if an amount box does not require an entry, leave it blank. When required, round your answers to the nearest cent.

Account ( cash, Fica tax payble HI, Fica tax payble OASDI,Payroll taxes, Wages expence)

Nov 30 Account _______ debit________ Credit_____

Nov 30 Account _______ debit________ Credit_____

Nov 30 Account _______ debit________ Credit_____

Nov 30 Account _______ debit________ Credit_____

b. Prior to posting the November 30 payroll transaction, FICA Taxes Payable-OASDI, FICA Taxes Payable-HI, and Employees FIT Payable had zero balances. Ruther must pay the FICA taxes and income taxes withheld on the November 30 payroll. Journalize the electronic transfer of the payroll taxes on December 15.

If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.

Dec15 Account_________Debit__________Credit_________

Reference no: EM131450922

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