Fundamentals Of Financial Accounting
6th Edition
ISBN: 9781259864230
Author: PHILLIPS, Fred, Libby, Robert, Patricia A.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 10, Problem 3E
Recording Payroll Costs
McLoyd Company completed the salary and wage payroll for March. The payroll provided the following details:
| Salaries and wages earned. | $400,000 |
| Employee income taxes withheld | 37,000 |
| FICA taxes withheld | 28,600 |
| 2,780 |
Required:
- 1. Considering both employee and employer payroll taxes, use the preceding information to calculate the total labor cost for the company.
- 2. Prepare the
journal entry to record the payroll for March, including employee deductions (but excluding employer payroll taxes). Employees were paid in March but amounts withheld were not yet remitted. - 3. Prepare the journal entry to record the employer’s FICA taxes and unemployment taxes.
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