The following information about the weekly payroll was obtained from the records of Boltz Co.: Salaries: Sales salaries $325,000 Income tax withheld $116,600 Warehouse salaries 200,000 U.S. savings bonds 14,674 Deductions: Office salaries 142,000 Group insurance 12,006 $667,000 Tax rates assumed: Social security 6% State unemployment (employer only) 5.4% Medicare 1.5% Federal unemployment (employer only) 0.8% Required: 1. Assuming that the payroll related to the first full week of the year and was paid on January 7, journalize the following entries: a. January 7, to record the payroll. b. January 7, to record the employer's payroll taxes on the payroll for the first week of the year. Since it is a new fiscal year, all $667,000 in salaries is subject to unemployment compensation taxes. 2. Assuming that the payroll related to the last week of the year and was paid on December 31, journalize the following entries: a. December 31, to record the payroll. b. December 31, to record the employer's payroll taxes on the payroll for the last week of the year. Of the total payroll for the last week of the year, $32,000 is subject to unemployment compensation taxes.
The following information about the weekly payroll was obtained from the records of Boltz Co.: Salaries: Sales salaries $325,000 Income tax withheld $116,600 Warehouse salaries 200,000 U.S. savings bonds 14,674 Deductions: Office salaries 142,000 Group insurance 12,006 $667,000 Tax rates assumed: Social security 6% State unemployment (employer only) 5.4% Medicare 1.5% Federal unemployment (employer only) 0.8% Required: 1. Assuming that the payroll related to the first full week of the year and was paid on January 7, journalize the following entries: a. January 7, to record the payroll. b. January 7, to record the employer's payroll taxes on the payroll for the first week of the year. Since it is a new fiscal year, all $667,000 in salaries is subject to unemployment compensation taxes. 2. Assuming that the payroll related to the last week of the year and was paid on December 31, journalize the following entries: a. December 31, to record the payroll. b. December 31, to record the employer's payroll taxes on the payroll for the last week of the year. Of the total payroll for the last week of the year, $32,000 is subject to unemployment compensation taxes.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter8: Liabilities And Stockholders' Equity
Section: Chapter Questions
Problem 8.2.3P: Recording payroll and payroll taxes The following information about the payroll for the week ended...
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