Great Dane Trailers has the following data available for its March 31,Year 1,payroll:
$\begin{array}{ll}
\text { Gross pay* } & \$ 180,000 \
\text { Federal income taxes withheld } & 43,200 \
\text { Provincial income taxes withheld } & 7,200 \
\text { "All subject to employee deduction matching and withholding at } 7.65 \%
\end{array}$
Federal employment tax and provincial employment tax are also applicable at rates of 0.8% and 3.5%,respectively.All wages are subject to these taxes.
Prepare the journal entries to record the wages earned and payroll taxes.

Question

Great Dane Trailers has the following data available for its March 31,Year 1,payroll:
 $\begin{array}{ll}
\text { Gross pay* } & \$ 180,000 \
\text { Federal income taxes withheld } & 43,200 \
\text { Provincial income taxes withheld } & 7,200 \
\text { "All subject to employee deduction matching and withholding at } 7.65 \%
\end{array}$ 
Federal employment tax and provincial employment tax are also applicable at rates of 0.8% and 3.5%,respectively.All wages are subject to these taxes.
Prepare the journal entries to record the wages earned and payroll taxes.

Quizplus · Accepted Answer

The Answer of Great Dane Trailers has the following data available for its March 31,Year 1,payroll:
 $\begin{array}{ll}
\text { Gross pay* } & \$ 180,000 \
\text { Federal income taxes withheld } & 43,200 \
\text { Provincial income taxes withheld } & 7,200 \
\text { "All subject to employee deduction matching and withholding at } 7.65 \%
\end{array}$ 
Federal employment tax and provincial employment tax are also applicable at rates of 0.8% and 3.5%,respectively.All wages are subject to these taxes.
Prepare the journal entries to record the wages earned and payroll taxes.

Great Dane Trailers Has the Following Data Available for Its