Payroll Accounting and Discussion of Labor CostsBlitzen Marketing Research paid its weekly and monthly payroll on January 31. The following information is available about the payroll:ItemAmount Monthly salaries$237,480Hourly wages585,000FICA: Social Security (both employee and employer)6.20% Medicare (both employee and employer)1.45%Withholding for federal income taxes$108,500Federal unemployment taxes1,200State unemployment taxes4,000 Blitzen will pay both the employer's taxes and the taxes withheld on April 15.Required:1. Prepare the journal entries to record the payroll payment and the incurrence of the associated expenses and liabilities. If an amount box does not require an entry, leave it blank. When required, round your answers to two decimal places.

Introduction: A journal entry is an act of recording or keeping track of any financial or…

Answered: Payroll Accounting and Discussion of…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 68E: Payroll Accounting and Discussion of Labor Costs Blitzen Marketing Research paid its weekly and...

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Payroll Accounting and Discussion of Labor Costs

Blitzen Marketing Research paid its weekly and monthly payroll on January 31. The following information is available about the payroll:

Item	Amount
Monthly salaries	$237,480
Hourly wages	585,000
FICA:
Social Security (both employee and employer)	6.20%
Medicare (both employee and employer)	1.45%
Withholding for federal income taxes	$108,500
Federal unemployment taxes	1,200
State unemployment taxes	4,000

Blitzen will pay both the employer's taxes and the taxes withheld on April 15.

Required:

1. Prepare the journal entries to record the payroll payment and the incurrence of the associated expenses and liabilities. If an amount box does not require an entry, leave it blank. When required, round your answers to two decimal places.

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