Answer:
Dr. Wages Account with $7,500 (employee Wages Payable)
Cr. Federal Income Tax Payable on Employee Wage with $1,800
Cr. State Income Tax Payable on Employee Wage with $318
Cr. FICA Medicare Payable with $108.75 (1.45% on Taxable wage of $7,500)
Cr. FICA Social Security Payable with $465 (6.2% on Taxable wage of $7,500)
Cr. Bank/Cash/Wages Payable Account with $4,808.25 (Net Wage Payable to Employee)
Explanation:
Dr. Wages Account with $7,500 (employee Wages Payable)
Cr. Federal Income Tax Payable on Employee Wage with $1,800
Cr. State Income Tax Payable on Employee Wage with $318
Cr. FICA Medicare Payable with $108.75 (1.45% on Taxable wage of $7,500)
Cr. FICA Social Security Payable with $465 (6.2% on Taxable wage of $7,500)
Cr. Bank/Cash/Wages Payable Account with $4,808.25 (Net Wage Payable to Employee)
