For the year ended December 31, 2022, Crane Electrical Repair Company reports the following summary payroll data. Gross earnings: Administrative salaries $214,000 Electricians’ wages 362,000 Total $576,000 Deductions: FICA taxes $38,639 Federal income taxes withheld 187,500 State income taxes withheld (3%) 17,280 United Fund contributions payable 27,789 Health insurance premiums 19,500 Total $290,708 Crane’s payroll taxes are Social Security tax 6.2%, Medicare tax 1.45%, state unemployment 2.5% (due to a stable employment record), and 0.6% federal unemployment. Gross earnings subject to Social Security taxes of 6.2% total $488,500, and gross earnings subject to unemployment taxes total $150,000. No employee exceeds the $132,900 limit related to FICA taxes. (a) Prepare a summary journal entry at December 31 for the full year’s payroll. (b) Journalize the adjusting entry at December 31 to record the employer’s payroll taxes. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (c) The W-2 Wage and Tax Statement requires the following dollar data. Complete the required data for the following employees. (Round answers to 0 decimal places, e.g. 5,275.) Employee Wages, Tips, Other Compensation Federal Income Tax Withheld State Income Tax Withheld FICA Wages FICA Tax Withheld Maria Sandoval $60,000 $29,400 $enter a dollar amount $enter a dollar amount $enter a dollar amount Jennifer Mingenback 30,000 11,700 enter a dollar amount enter a dollar amount enter a dollar amount

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 4E

See similar textbooks

Related questions

Question

100%

For the year ended December 31, 2022, Crane Electrical Repair Company reports the following summary payroll data.

Gross earnings:
Administrative salaries		$214,000
Electricians’ wages		362,000
Total		$576,000
Deductions:
FICA taxes		$38,639
Federal income taxes withheld		187,500
State income taxes withheld (3%)		17,280
United Fund contributions payable		27,789
Health insurance premiums		19,500
Total		$290,708

Crane’s payroll taxes are Social Security tax 6.2%, Medicare tax 1.45%, state unemployment 2.5% (due to a stable employment record), and 0.6% federal unemployment. Gross earnings subject to Social Security taxes of 6.2% total $488,500, and gross earnings subject to unemployment taxes total $150,000. No employee exceeds the $132,900 limit related to FICA taxes.

(a)		Prepare a summary journal entry at December 31 for the full year’s payroll.
(b)		Journalize the adjusting entry at December 31 to record the employer’s payroll taxes.

(Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(c) The W-2 Wage and Tax Statement requires the following dollar data.

Complete the required data for the following employees. (Round answers to 0 decimal places, e.g. 5,275.)

Employee	Wages, Tips, Other Compensation	Federal Income Tax Withheld	State Income Tax Withheld	FICA Wages	FICA Tax Withheld
Maria Sandoval	$60,000	$29,400	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount
Jennifer Mingenback	30,000	11,700	enter a dollar amount	enter a dollar amount	enter a dollar amount

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Recommended textbooks for you

College Accounting (Book Only): A Career Approach

Accounting

ISBN:

9781337280570

Author:

Scott, Cathy J.

Publisher:

South-Western College Pub