Rushing River Boats has the following data in its Social Security tax payable General Ledger account:
It is a monthly schedule depositor.What entry should appear in the General Ledger to reflect the tax remittance on February 15?

Question

Rushing River Boats has the following data in its Social Security tax payable General Ledger account: 
It is a monthly schedule depositor.What entry should appear in the General Ledger to reflect the tax remittance on February 15?

Quizplus · Accepted Answer

As a monthly schedule depositor, Rushing River Boats should remit the Social Security tax payable for January, February, and March on April 15. Therefore, the tax remittance on February 15 reflects the amount for January, which is $1,620 (assuming a 6.2% tax rate on $26,100 of wages paid in January). To reduce the liability in the Social Security tax payable account, the company should debit the account for $1,620.

Rushing River Boats Has the Following Data in Its Social