The summary of the payroll for the monthly pay period ending July 15 indicated the following: Sales salaries$135,000Federal income tax withheld32,300Office salaries30,000Medical insurance withheld7,370Social security tax withheld10,200Medicare tax withheld2,550 Journalize the entries to record (a) the payroll and (b) the employer's payroll tax expense for the month. The state unemployment tax rate is 3.1%, and the federal unemployment tax rate is 0.8%. Only $30,000 of salaries are subject to unemployment taxes.

State Unemployment Tax Payable = Salaries Expense x state unemployment tax rate = 30000*3.1% = $930…

Answered: The summary of the payroll for the…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 7RE: Wallace Corporation summarizes the following information from its weekly payroll records during...

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The summary of the payroll for the monthly pay period ending July 15 indicated the following:

Sales salaries	$135,000
Federal income tax withheld	32,300
Office salaries	30,000
Medical insurance withheld	7,370
Social security tax withheld	10,200
Medicare tax withheld	2,550

Journalize the entries to record (a) the payroll and (b) the employer's payroll tax expense for the month. The state unemployment tax rate is 3.1%, and the federal unemployment tax rate is 0.8%. Only $30,000 of salaries are subject to unemployment taxes.

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