Recording Payroll Taxes Recording Payroll Taxes According to a summary o the payroll...
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Accounting
Recording Payroll Taxes
Recording Payroll Taxes According to a summary o the payroll o Kirby Co S380 50 n earnings vere subiectto the 7.7% FICA tax. Also, $49465 in earnin s vere subiect to state and ederal unemployment taxes. Round your answers to the nearest cent a. Calculate the employer's payroll taxes, using the following rates: state unemployment. 4.7%; federal unemployment 1.1%. b. Illustrate the effects on the accounts and financial statements of recording the accrual of payroll taxes. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Balance Sheet Statement of Income Assets Liabilities +Stockholders Equity Cash Flows No effect No effect FICA tax payable +SUTA payable FUTA payable Retained earnings v 0 Statement of Cash Flows Income Statement No effect V Payroll tax expense
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