Kip bowman is owner and sole employee of kb corporation. he pays

Kip Bowman is owner and sole employee of KB Corporation.

He pays himself a salary of $1,500 each week.

Additional tax information includes:

FICA tax—OASDI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2% on first $110,100 (6.2%—employer)

FICA tax—HI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.45% on total pay

Federal income tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $232.00 per pay

State income tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22% of the federal income tax withholding

Federal unemployment tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6% on first $7,000

State unemployment tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05% on first $14,000

Additional payroll deductions include:

401(k) plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3% per pay

Child support garnishment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100 per pay

Health insurance premium. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $95 per pay

Record the payroll entry and payroll tax entry for the

pay of the week ended June 7 (his year-to-date pay is

$31,500).

JOURNAL

DATE DESCRIPTION