First Street Restaurant incurred salaries expense of $60,000 for 2018. The payroll tax expense includes employer FICA tax, state unemployment tax and federal unemployment tax. Year-to-date earnings do not exceed $118,500. Of the total salaries, $17,000 is subject to unemployment tax. Currently, state unemployment tax is 5.4% and federal unemployment tax is 0.6%. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,500), life insurance (cost to the company, $700), and retirement benefits (cost to the company, 10% of salaries expense). Journalize First Street's expenses for employee benefits and for payroll taxes. Explanations are not required.
What will be an ideal response?
You might also like to view...
No conflict will exist between the NPV and IRR methods, when used to evaluate two equally risky but mutually exclusive projects, if the projects' cost of capital exceeds the rate at which the projects' NPV profiles cross.
Answer the following statement true (T) or false (F)
The Pregnancy Discrimination Act extended the benefits of Title VII to pregnant women
a. True b. False Indicate whether the statement is true or false
?Cash cows are market leaders that are growing fast, with substantial reported profits.
Answer the following statement true (T) or false (F)
If a stock was purchased for $5,000 in January 2015 and is sold in December 2015 for $3,000, a ________ of $2,000 results
A) long-term capital gain B) short-term capital gain C) long-term capital loss D) short-term capital loss