Entries for payroll and payroll taxes The following information about the payroll for the week ended December 30 was obtained from the records of Pharrell Co.: Instructions 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries: a. December 30, to record the payroll. b. 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, $40,000 is subject to unemployment compensation taxes. 2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries: a. December 30, to record the payroll. b. January 5, to record the employer’s payroll taxes on the payroll to be paid on January 5. Because it is a new fiscal year, all salaries are subject to unemployment compensation taxes.

BuyFind

Financial Accounting

15th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337272124
BuyFind

Financial Accounting

15th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337272124

Solutions

Chapter 11, Problem 2PA
Textbook Problem

Entries for payroll and payroll taxes

The following information about the payroll for the week ended December 30 was obtained from the records of Pharrell Co.:

Chapter 11, Problem 2PA, Entries for payroll and payroll taxes The following information about the payroll for the week ended

Instructions

  1. 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries:
    1. a. December 30, to record the payroll.
    2. b. 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, $40,000 is subject to unemployment compensation taxes.
  2. 2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries:
    1. a. December 30, to record the payroll.
    2. b. January 5, to record the employer’s payroll taxes on the payroll to be paid on January 5. Because it is a new fiscal year, all salaries are subject to unemployment compensation taxes.

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Chapter 11 Solutions

Financial Accounting
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