$350,000 Warehouse salaries 182,000 Office salaries 136,000 $668,000 Deductions:
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter8: Employer Taxes, Payments, And Reports
Section: Chapter Questions
Problem 2PA
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Question
The following information about the payroll for the week ended December 30 was obtained from the records of Pharrell Co.:
Salaries: | |
Sales salaries | $350,000 |
Warehouse salaries | 182,000 |
Office salaries | 136,000 |
$668,000 | |
Deductions: | |
Federal income tax withheld | $117,000 |
Social security tax withheld | 40,080 |
Medicare tax withheld | 10,020 |
Retirement savings | 14,696 |
Group insurance | 12,024 |
$193,820 | |
Tax rates assumed: | |
Social security | 6% |
Medicare | 1.5% |
State |
5.4% |
Federal unemployment (employer only) | 0.6% |
Required:
equired:
1. | Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the chart of accounts for the exact wording of the account titles. |
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, $34,000 is subject to unemployment compensation taxes. |
2. | a. | On page 11 of the journal: December 30, to record the payroll. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
b. | CHART OF ACCOUNTS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pharrell Co. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
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