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Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

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BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Journalize period payroll

The payroll register of Longboat Co. indicates 55,400 of social security Withheld and $1,350 of Medicare tax withheld on total salaries of $90,000 for the period. Retirement savings Withheld from employee paychecks were $5,400 for the period. Federal withholding for the period totaled $ 17,820.

Provide the journal entry for the period's payroll.

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.

To Journalize: The entry to record period’s payroll.

Explanation

  • Salaries expense is an expense and it decreases equity value. So, debit it by $90,000.
  • Social security taxes payable is a liability and it is increased. So, credit it by $5,400.
  • Medicare taxes payable is a liability and it is increased. So, credit it by $1,350...

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