Metro Express Has Five Sales Employees,each of Whom Earns $4,000

Metro Express has five sales employees,each of whom earns $4,000 per month and is paid on the last working day of the month.Each employee's wages are subject to FICA Social Security taxes of 6.2% and Medicare taxes of 1.45% on all wages.Withholding for each employee also includes federal income tax of 16% and monthly medical insurance premiums of $110 for each employee.
a.Prepare the general journal entry to accrue the monthly sales salaries expense at January 31.
b.The employer payroll taxes for Metro Express include: FICA taxes,federal unemployment taxes of 0.8% on the first $7,000 paid to each employee,and state unemployment taxes of 4.0% on the first $7,000 paid to each employee.Prepare the journal entry to record the employer's payroll taxes at January 31 for Metro Express.

Correct Answer:

Verified

a.
b. _TB...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

View Full Answer For Free