Exempt from futa and suta taxes

Assignment Help Financial Management

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_____

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

Questions Cloud

The coupon rate that is shown on the face of a bond : The coupon rate that is shown on the face of a bond:

What is the percentage change in the bonds price : what is the percentage change in the bond’s price?

Subsidiaries are taxed as independent corporations : Chirp Corporation owns two subsidiaries, Song and Bird. If the subsidiaries are taxed as independent corporations.

What is present value of this perpetuity if discount rate : What is the present value of this perpetuity if the discount rate is 8%?

Exempt from futa and suta taxes : Cal Ruther, an employer, is subject to FICA taxes but exempt from FUTA and SUTA taxes.

What is the primary source of external financing and why : Why is the stock market not the primary source of external financing for businesses? What is the primary source of external financing and why?

About the constant growth valuation : Woidtke Manufacturing's stock currently sells for $25 a share.What stock price is expected 1 year from now?

Hopefully eliminate the conflict of interest : What steps were taken to “hopefully” eliminate the conflict of interest.

Considering five-year investment-capital budgeting process : Sampdoria General Company (SGC) is considering a five-year investment which costs $100,000 today. uses the following criterions in its capital budgeting process

User Account

All Pages