Question

KMH Industries is a monthly schedule depositor of payroll taxes. For the month of August 2019, the payroll taxes (employee and employer share combined) were as follows: Social Security tax: $4,355.03 Medicare tax: $1,018.52 Employee Federal income tax: $3,400 Required: Create the General Journal entry for the remittance of the taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places.)

Answer 1

Answer and Explanation:

The Journal entry is shown below:-

Social Security tax payable Dr, $4,355.03

Medicare tax payable Dr, $1,018.52  

Employee Federal income tax payable Dr, $3,400

         To Cash $8,773.55

(Being remittance of the taxes is recorded)

here for recording the remittance of the taxes we simply debited the Social Security tax payable, Medicare tax payable and Employee Federal income tax payable as it decreasing the liabilities and we credited the cash as it assets are also decreasing.