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(2) BMX Company has 1,000 employees. FICA Social Security taxes are 6.2% of...

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Accounting

(2) BMX Company has 1,000 employees. FICA Social Security taxes are 6.2% of the first 132,900 paid to its employee and FICA Medicare taxes are 1.45%. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 2.9% of the first $7,000 paid to its employee. Every employee individually has earned more than $7,000, but no more than $80,000 as of December 15th,2019. Also, assume that the federal income taxes withheld by the employer are 10% of the gross pay for each period.
Through substantive analytical procedures, it has been discovered by the audit team that a material amount of 5 days worth of payroll accruals have not been recorded as of December 31,2019. Each employee of the total 1,000 employees worked 40 hours during the last 5 days of the year and earns an average of $37.50? hour.
Document below the adjusting journal entry you would propose to management of BMX Company.
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