The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.: Salaries: Deductions: $ 625,000 Sales salaries $232,260 Income tax withheld Warehouse salaries 240,000 Social security tax withheld 71,100 Office salaries Medicare tax withheld 320,000 17,775 Retirement savings $1,185,000 35,500 Group insurance 53,325 $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.
The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.: Salaries: Deductions: $ 625,000 Sales salaries $232,260 Income tax withheld Warehouse salaries 240,000 Social security tax withheld 71,100 Office salaries Medicare tax withheld 320,000 17,775 Retirement savings $1,185,000 35,500 Group insurance 53,325 $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.
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 1PA
Related questions
Question
Transcribed Image Text:The following information about the payroll for the week ended December 30 was obtained
from the records of Saine Co.:
Salaries:
Deductions:
$ 625,000
Sales salaries
$232,260
Income tax withheld
Warehouse salaries
240,000
Social security tax withheld
71,100
Office salaries
Medicare tax withheld
320,000
17,775
Retirement savings
$1,185,000
35,500
Group insurance
53,325
$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.
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