Answer:
a.
Date: 30 September
Debit: Salary Expense $2,200
Credit: Cash $1,827.70
Credit: Federal Income Tax Withheld payable $90
Credit: FICA Social Security Tax Payable $136.40
Credit: FICA Medicare Tax Payable $31.90
Credit: FUTA tax payable $11.40
Credit: SUTA tax payable $102.60
<em>To record salary expense for September.</em>
b.
Date: 30 September
Debit: Salary Expense $2,400
Credit: Cash $1,988.40
Credit: Federal Income Tax Withheld payable $90
Credit: FICA Social Security Tax Payable $148.80
Credit: FICA Medicare Tax Payable $34.80
Credit: FUTA tax payable $13.80
Credit: SUTA tax payable $124.20
<em>To record salary expense for September.</em>
c.
Date: 30 September
Debit: Salary Expense $8,600
Credit: Cash $8,031.90
Credit: Federal Income Tax Withheld payable $90
Credit: FICA Social Security Tax Payable $353.40
Credit: FICA Medicare Tax Payable $124.70
<em>To record salary expense for September.</em>
Explanation:
a.
FICA Social Security Tax Payable:
Gross Pay for September x FICA SS tax rate
$2,200 x 6.2% = $136.40
FICA Medicare Tax Payable:
Gross Pay for September x FICA SS tax rate
$2,200 x 1.45% = $31.90
FUTA tax payable:
($7,000 - $5,100) x 0.6% = $11.40
SUTA tax payable:
($7,000 - $5,100) x 5.4% = $102.60
b.
FICA Social Security Tax Payable:
Gross Pay for September x FICA SS tax rate
$2,400 x 6.2% = $148.80
FICA Medicare Tax Payable:
Gross Pay for September x FICA SS tax rate
$2,400 x 1.45% = $34.80
FUTA tax payable:
$2,300 x 0.6% = $13.80
SUTA tax payable:
$2,300 x 5.4% = $124.20
Note: FUTA and SUTA tax payable will be calculated on full amount as have not reached the threshold of $7,000.
c.
FICA Social Security Tax Payable:
Gross Pay for September x FICA SS tax rate
($128,400 - $122,700) x 6.2% = $353.40
FICA Medicare Tax Payable:
Gross Pay for September x FICA SS tax rate
$8,600 x 1.45% = $124.70
