The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co.: Salaries: Deductions: Sales salaries $171,000 Income tax withheld $61,952 Warehouse salaries 94,000 U.S. savings bonds 7,744 Office salaries 87,000 Group insurance 6,336 $352,000 Tax rates assumed: Social security, 6% Medicare, 1.5% State unemployment (employer only), 5.4% Federal unemployment (employer only), 0.8% Required: If an amount box does not require an entry, leave it blank. 1b. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on 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, $18,000 is subject to unemployment compensation taxes. Date Account Debit Credit Dec. 30 Payroll Tax Expense Social Security Tax Payable Medicare Tax Payable State Unemployment Tax Payable Federal Unemployment Tax Payable
The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co.: Salaries: Deductions: Sales salaries $171,000 Income tax withheld $61,952 Warehouse salaries 94,000 U.S. savings bonds 7,744 Office salaries 87,000 Group insurance 6,336 $352,000 Tax rates assumed: Social security, 6% Medicare, 1.5% State unemployment (employer only), 5.4% Federal unemployment (employer only), 0.8% Required: If an amount box does not require an entry, leave it blank. 1b. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on 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, $18,000 is subject to unemployment compensation taxes. Date Account Debit Credit Dec. 30 Payroll Tax Expense Social Security Tax Payable Medicare Tax Payable State Unemployment Tax Payable Federal Unemployment Tax Payable
College Accounting (Book Only): A Career Approach
12th Edition
ISBN:9781305084087
Author:Cathy J. Scott
Publisher:Cathy J. Scott
Chapter8: Employer Taxes, Payments, And Reports
Section: Chapter Questions
Problem 2PA
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Entries for Payroll and Payroll Taxes
The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co.:
| Salaries: | Deductions: | |||||
| Sales salaries | $171,000 | Income tax withheld | $61,952 | |||
| Warehouse salaries | 94,000 | U.S. savings bonds | 7,744 | |||
| Office salaries | 87,000 | Group insurance | 6,336 | |||
| $352,000 | ||||||
| Tax rates assumed: | |
| Social security, 6% | |
| Medicare, 1.5% | |
| State |
|
| Federal unemployment (employer only), 0.8% |
Required:
If an amount box does not require an entry, leave it blank.
1b. Assuming that the payroll for the last week of the year is to be paid on December 31,
| Date | Account | Debit | Credit |
|---|---|---|---|
| Dec. 30 | Payroll Tax Expense | ||
| Social Security Tax Payable | |||
| Medicare Tax Payable | |||
| State Unemployment Tax Payable | |||
| Federal Unemployment Tax Payable |
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