# Payroll entries The payroll register for Gamble Company for the week ended April 29 indicated the following: Salaries $1,250,000.00 Social security tax withheld 75,000 Medicare tax withheld I8,750 Federal income tax withheld 250,000 In addition, state and federal unemployment taxes were calculated at the rate of 5.4% and 0.6% respectively, on$225,000 of salaries. a. Journalize the entry to record the payroll for the week of April 29. b. Journalize the entry to record the payroll tax expense incurred for the week of April 29.

### Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

### Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

#### Solutions

Chapter
Section
Chapter 11, Problem 11.13EX
Textbook Problem

## Payroll entriesThe payroll register for Gamble Company for the week ended April 29 indicated the following: Salaries $1,250,000.00 Social security tax withheld 75,000 Medicare tax withheld I8,750 Federal income tax withheld 250,000 In addition, state and federal unemployment taxes were calculated at the rate of 5.4% and 0.6% respectively, on$225,000 of salaries. a. Journalize the entry to record the payroll for the week of April 29. b. Journalize the entry to record the payroll tax expense incurred for the week of April 29.

Expert Solution

A.

To determine

Payroll: The total payment that a company is required to pay to its employee for the services received is called as payroll.

Payroll withholding deduction: The amounts which the employer withheld from employees’ gross pay to deduct taxes such as federal income tax, state income tax, local income tax, and social security tax are called payroll withholding deduction.

Employer payroll taxes: The taxes which the employer must pay to the employees with their salaries is called employer payroll taxes. Such taxes are not withheld from employees’ gross earnings but instead they are paid by employer.

To Journalize: The entry to payroll for the week of April 29.

### Explanation of Solution

• Salaries expense is an expense and it decreases equity value. So, debit it by $1,250,000. • Social security taxes payable is a liability and it is increased. So, credit it by$75,000.
• Medicare taxes payable is a liability and it is increased...
Expert Solution

B.

To determine

To Journalize: The payroll taxes expense incurred for the week of April 29.

### Want to see the full answer?

Check out a sample textbook solution.See solution

### Want to see this answer and more?

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

See solution

Find more solutions based on key concepts
Show solutions
What are the major types of employee benefits?

Foundations of Business (MindTap Course List)

Explain the purpose of the work sheet.

College Accounting, Chapters 1-27

Why do economists make assumptions?

Essentials of Economics (MindTap Course List)

Explain the function of each of the four closing entries made by Sunflower Cycle.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

RATIO ANALYSIS The Corrigan Corporation's 2013 and 2014 financial statements follow, along with some industry a...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)