Answer:
A.
Dr Salaries and Wages Expense $1,900,000,
Cr Withholding Taxes Payable $461,000,
Cr FICA Taxes Payable 124,890
Cr Cash 1,314,110
B.
Dr Payroll Tax Expense 158,535
Cr FICA Taxes Payable 150,135
Cr FUTA Taxes Payable 3,360
Cr SUTA Taxes Payable 5,040
Explanation:
Walnut Co
A.
Dr Salaries and Wages Expense $1,900,000,
Cr Withholding Taxes Payable $461,000,
Cr FICA Taxes Payable 124,890
Cr Cash 1,314,110
(1,900,000 – $330,000) × 7.65%+ ($330,000 × 1.45%)
=1,570,000×0.0765+4,785
=120,105+4,785
B.
Dr Payroll Tax Expense 158,535
Cr FICA Taxes Payable 150,135
($1900,000 × 7.65%) + ($330,000 × 1.45%)
(145,350+4,785)
Cr FUTA Taxes Payable 3,360
($1,900,000 – $1,480,000) × .8%
420,000×.8%
Cr SUTA Taxes Payable 5,040
($420,000 × 1.2%)
