Santa Barbara Express Has 4 Sales Employees, Each of Whom

question 74

Essay

Santa Barbara Express has 4 sales employees, each of whom earns $5,000 per month and is paid on the last working day of the month. Each employee's wages are subject to FICA social security taxes of 6.2% of the first $118,500 of earnings each calendar year and Medicare taxes of 1.45% of all earnings. Withholding for each employee also includes federal income tax of 16% and monthly medical insurance premiums of $110 for each employee.
a. Prepare the general journal entry to accrue the monthly sales salaries expense at January 31.
b. The employer payroll taxes for Santa Barbara Express include FICA taxes, federal unemployment taxes of 0.6% of the first $7,000 paid each employee, and state unemployment taxes of 4.0% of the first $7,000 paid to each employee. Prepare the journal entry to record the employer's payroll taxes at January 31 for Santa Barbara Express. (Assume that none of the employees has reached the unemployment limit of $7,000.)

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Definitions:

Horizontal-Vertical Illusion

A visual illusion where the perception of length is distorted; horizontal segments appear longer than vertical ones of the same length.

Relative Size

Relative size is a visual perception cue where the size of an object, when compared with another, helps determine depth or distance in a two-dimensional representation.

Timbre

The quality of a musical note, sound, or tone that distinguishes different types of sound production, such as voices or musical instruments.

Purity

The condition of being free from contaminants or pollutants; often used metaphorically to signify moral or ethical cleanliness.