Explanation Payroll: Payroll refers to the total amount that is required to be paid by the company to its employees during a week, month or other period. It is the financial record of the wages and bonus, net pay, salary and deductions of a company’s employees. Prepare journal entry to record the payroll entry as of March 21. Date Account Title and explanation Debit ($) Credit ($) March 21 Sales Salaries expense 7,620.00 Office salaries expense 1,790.00 Employee federal income tax payable 1,094.00 FICA-Social Security taxes payable 583.42 FICA-Medicare Taxes payable 136.45 Employee’s charitable payable 153.00 Salaries payable 7,443.13 (To record payroll for the week ended March 21.) Table (1) Sales Salaries expense is an expense account and it is increased. Hence, debit Sales Salaries expense with $7,620.00. Office salaries expense is an expense account and it is increased. Hence, debit office salaries expense with $1,790.00. Employee Federal income tax payable is a liability and there is an increase in the value of liability. Hence, credit the employee Federal income tax payable by $1,094.00. FICA tax – social and security tax payable is a liability and there is an increase in the value of liability. Hence, credit the FICA tax – social and security tax payable by $583.42. FICA tax – medical tax payable is a liability and there is an increase in the value of liability. Hence, credit the FICA tax – medical tax payable by $136.45. Employee’s charitable payable is a liability and it is increased. Hence, credit employee’s charitable payable by $153.00. Salaries payable is a liability and it is increased. Hence, credit salaries payable by $7,443.13 Prepare journal entry to record the employer’s payroll taxes as of March 21 by assuming that total payroll is subject to the FICA taxes and that $4,965 is subject to unemployment taxes. Date Account Title and explanation Debit ($) Credit ($) March 21 Payroll tax expense 1,017.77 FICA-Social Security taxes payable ( $ 9 , 410 × 6

College Accounting (Book Only): A Career Approach

13th Edition

ISBN: 9781337280570

Author: Scott, Cathy J.

Publisher: South-Western College Pub

See similar textbooks

Question

Chapter 8, Problem 1PB

To determine

Prepare necessary journal entry to record the given transaction.

Expert Solution & Answer

Chapter 8 Solutions

College Accounting (Book Only): A Career Approach

Ch. 8 - Prob. 1QY Ch. 8 - Prob. 2QY Ch. 8 - Prob. 3QY Ch. 8 - Prob. 4QY Ch. 8 - Prob. 5QY Ch. 8 - Prob. 6QY Ch. 8 - Prob. 7QY Ch. 8 - Prob. 8QY Ch. 8 - Prob. 9QY Ch. 8 - Prob. 1DQ

Knowledge Booster

Similar questions

Recommended textbooks for you

College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781305084087
Author:Cathy J. Scott
Publisher:Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
College Accounting, Chapters 1-27 (New in Account...
Accounting
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College