1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries: Salaries: Sales salaries $625,000 Warehouse salaries $240,000 Office salaries $320,000 Total $1,185,000 Deductions: Federal income tax withheld $232,260 Social security tax withheld $71,100 Medicare tax withheld $17,775 Retirement savings $35,500 Group insurance $53,325 Total $409,960 Tax rates assumed: Social security, 6% Medicare, 1.5% State unemployment (employer only), 5.4% Federal unemployment (employer only), 0.6% Instructions 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries: a. December 30, to record the payroll. b. December 30, to record the employer’s payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $30,000 is subject to unemployment compensation taxes. 2. Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year, journalize the following entries: a. December 30, to record the payroll. b. January 4, to record the employer’s payroll taxes on the payroll to be paid on January 4. Because it is a new fiscal year, all $1,185,000 in salaries is subject to unemployment compensation taxes.
1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries: Salaries:
Sales salaries $625,000
Warehouse salaries $240,000
Office salaries $320,000
Total $1,185,000
Deductions:
Federal income tax withheld $232,260
Social security tax withheld $71,100
Medicare tax withheld $17,775
Retirement savings $35,500
Group insurance $53,325
Total $409,960
Tax rates assumed:
Social security, 6%
Medicare, 1.5%
State
Federal unemployment (employer only), 0.6%
Instructions
1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries:
a. December 30, to record the payroll.
b. December 30, to record the employer’s payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $30,000 is subject to unemployment compensation taxes.
2. Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year, journalize the following entries:
a. December 30, to record the payroll.
b. January 4, to record the employer’s payroll taxes on the payroll to be paid on January 4. Because it is a new fiscal year, all $1,185,000 in salaries is subject to unemployment compensation taxes.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 8 images
