Question

Using the data in situation a of Exercise 11-6, prepare the employer’s September 30 journal entries
to record (1) salary expense and its related payroll liabilities for this employee and (2) the employer’s
payroll taxes expense and its related liabilities. The employee’s federal income taxes withheld by the employer are $135 for this pay period.
Tax Rate Applied To
FICA—Social Security . . . . . . . 6.20% First $87,000
FICA—Medicare . . . . . . . . . . . 1.45 All gross pay
FUTA . . . . . . . . . . . . . . . . . . . 0.80 First $7,000
SUTA . . . . . . . . . . . . . . . . . . . 2.90 First $7,000
Gross Pay Gross
through Pay for
August September
a. $ 6,400 $ 800
b. 18,200 2,100
c. 82,000 8,000

Answer 1

What obligation does an entrepreneur (owner) have to investors
that purchase bonds to finance the business