Louis Welch is general manager of Moonwalk Salons. During 2024, Welch worked for the company all year at a $11,800 monthly salary. He also earned a year-end bonus equal to 10% of his annual salary. Welch's federal income tax withheld during 2024 was $1,180 per month, plus $4,531 on his bonus check. State income tax withheld came to $130 per month, plus $40 on the bonus. FICA tax was withheld on the annual earnings. Welch authorized the following payroll deductions: Charity Fund contribution of 4% of total earnings and life insurance of $40 per month. Make the journal entry to record the accrual of Moonwalk's payroll tax expense for Welch's total earnings. 5. Make the journal entry for the payment of the payroll withholdings and taxes.
Louis Welch is general manager of Moonwalk Salons. During 2024, Welch worked for the company all year at a $11,800 monthly salary. He also earned a year-end bonus equal to 10% of his annual salary. Welch's federal income tax withheld during 2024 was $1,180 per month, plus $4,531 on his bonus check. State income tax withheld came to $130 per month, plus $40 on the bonus. FICA tax was withheld on the annual earnings. Welch authorized the following payroll deductions: Charity Fund contribution of 4% of total earnings and life insurance of $40 per month. Make the journal entry to record the accrual of Moonwalk's payroll tax expense for Welch's total earnings. 5. Make the journal entry for the payment of the payroll withholdings and taxes.
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 10PA: Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and...
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Question
Louis Welch
is general manager of
Moonwalk
Salons. During
2024,
Welch
worked for the company all year at a
$11,800
monthly salary. He also earned a year-end bonus equal to
10%
of his annual salary.
Welch's
federal income tax withheld during
2024
was
$1,180
per month, plus
$4,531
on his bonus check. State income tax withheld came to
$130
per month, plus
$40
on the bonus. FICA tax was withheld on the annual earnings.
Welch
authorized the following payroll deductions: Charity Fund contribution of
4%
of total earnings and life insurance of
$40
per month.
Make the
Moonwalk's
payroll tax expense for
Welch's
total earnings. |
|
5.
|
Make the journal entry for the payment of the payroll withholdings and taxes.
|
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