Harmony Company has accrued payroll costs of $50,000 for the period May 28 - 31 as follows: Other Information: (a) The FICA rate is 8% of the first $100,000 of wages. None of the employees has reached this maximum.
(b) The company is responsible for state and federal unemployment taxes on the first $8,000 of wages. All of the employees have previously reached this maximum.
(c) Payroll taxes are spread over all jobs.
What entry would be necessary to accrue payroll taxes for the period of May 28 - 31?

Question

Harmony Company has accrued payroll costs of $50,000 for the period May 28 - 31 as follows:  Other Information: (a) The FICA rate is 8% of the first $100,000 of wages. None of the employees has reached this maximum.
(b) The company is responsible for state and federal unemployment taxes on the first $8,000 of wages. All of the employees have previously reached this maximum.
(c) Payroll taxes are spread over all jobs.
What entry would be necessary to accrue payroll taxes for the period of May 28 - 31?

Quizplus · Accepted Answer

The Answer of Harmony Company has accrued payroll costs of $50,000 for the period May 28 - 31 as follows:  Other Information: (a) The FICA rate is 8% of the first $100,000 of wages. None of the employees has reached this maximum.
(b) The company is responsible for state and federal unemployment taxes on the first $8,000 of wages. All of the employees have previously reached this maximum.
(c) Payroll taxes are spread over all jobs.
What entry would be necessary to accrue payroll taxes for the period of May 28 - 31?

Harmony Company Has Accrued Payroll Costs of $50,000 for the Period