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Rudiy27
3 years ago
9

Merger Co. has 10 employees, each of whom earns $1,700 per month and has been employed since January 1. FICA Social Security tax

es are 6.2% of the first $132,900 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee.
Prepare the March 31 journal entry to record the March payroll taxes expenses. (Round your answers to 2 decimal places.)
Business
1 answer:
andriy [413]3 years ago
7 0

Answer:

Date            Description                                         Debit                    Credit

March, 31     Payroll Tax expense                       $‭2,320.5‬0

                    FICA Social Security taxes                                             $1,054

                    FICA Medicare taxes                                                      $ 246.50

                    FUTA taxes                                                                      $ 102

                    SUTA taxes                                                                      $ 918

<u>Working </u>

FICA Social Security taxes = 1,700 * 10 * 6.2% = $‭1,054‬

FICA Medicare taxes = 1,700 * 10 * 1.45% = $‭246.5‬0

FUTA Taxes = 1,700 * 10 * 0.6% = $‭102‬

SUTA Taxes = 1,700 * 10 * 5.4% = $‭918‬

Payroll Tax expense = 1,054 + 246.50 + 102 + 918 = $‭2,320.5‬0

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A general partner is responsible for any debts of the partnership, regardless of whether he or she was directly involved in the
azamat

Answer:

True

Explanation:

A partnership is a type of business owned by two or more individuals known as partners. The partners join forces to exploits their talents and resources and profit from the business. A partnership may comprise of general and limited /silents partners.

The general partner participates in the day to day activities of the business. He or she makes business decisions on behalf of the partnership. Because a general partner is actively involved in managing the business, he has unlimited liability to its obligations. Should the partnership fail to meet its obligation, the assets of a general partner sold to settle the debts. He or she need not have been involved in creating the liability.

5 0
3 years ago
Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. Michael Mirer worked for Dawson Company for six months t
lisov135 [29]

Answer:

$83.4

Explanation:

Under FUTA, only the first $7000 earning per year will be taxed. Any amounts above $7000 will be tax-exempt.

For Michael, the tax will be calculated as follows.

for the$11200 earned in Dawson company

=0.6% x $7000

=0.06/100 x 7000

=0.006 x 7000

=$42

Amount earned working at McBribe

=0.06% x 6900

=0.006 x $6900

=$41.4

Total to be paid by the two companies

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=$83.4

5 0
3 years ago
David bought a pickup truck to transport his equipment on weekend fishing trips. He also bought a trailer for his lawn maintenan
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Answer:

B2C and B2B, respectively.

Explanation:

The pickup that David bought to transport equipment on weekend fishing trips should be considered a business to consumer (B2C) transaction David will use it for recreational activities.

The trailer that David bought to transport his lawn maintenance equipment should be considered a business to business (B2B) transaction David will use it for his lawn maintenance business.

6 0
3 years ago
Beginning WIP is 45% complete and ending WIP is 10% complete as to conversion costs. Materials are added at the beginning of the
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Answer:

c. none of these

units started into the process this period plus units in beginning inventory

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In FIFO , the physical units are divided between the beginning units, units started in process and the ending units. But as all the materials is added at the beginning of the process so the FIFO physical units would be divided between the units started into the process this period plus units in beginning inventory and hence the equivalent units for materials will be calculated.

So the best choice is option c.

5 0
3 years ago
That a company chooses a new product to introduce into the market is a ▼ capital budgeting capital structure working capital man
SashulF [63]

Answer:

Capital budgeting

Capital Structure

Working Capital Management

Explanation:

When a company wants to introduce any new product in the market it will do the cost benefit analysis and will involve the capital budgeting decisions.

When any kind of bonds are sold, shares are issued, debentures are sold, then that is about creating source of capital that is about, capital structure decision.

When the decision is made relating to any current assets or current liabilities, it is refer to working capital decisions as the working capital includes decision of current assets and current liabilities.

3 0
3 years ago
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