I'm not sure how I am calculating State Unemployment Tax Payable, Federal Unemployment Tax Payable, and Payroll Tax Expense incorrect. Payroll entriesInstructionsInstructionsWidmer Company had gross wages of $310,000 during the week ended June 17. The amount of wages subject to social security tax was$310,000, while the amount of wages subject to federal and state unemployment taxes was $35,000. Tax rates are as follows:Social securityChart of Accounts General JournalMedicareState unemploymentFederal unemployment6.0%1.5%5.4%0.8%The total amount withheld from employee wages for federal taxes $47,0Required:a. Journalize the entry to record the payroll for the week of June 17.b. Journalize the entry to record the payroll tax expense incurred for the week of June 17. InstructionsGeneral JournalDATE✓Jun. 17 Wages ExpenseDESCRIPTIONSocial Security Tax PayableMedicare Tax PayableEmployees Federal Income Tax PayableWages Payable✓Jun. 17 Payroll Tax ExpenseSocial Security Tax PayableMedicare Tax PayableState Unemployment Tax PayableFederal Unemployment Tax PayableJOURNAL✓✓✓✓✓✓POST. REF.DEBIT310,000.0021,514.00✓Shaded cells have feedback.ACCOUNTINScore: 117/123CREDIT18,600.004,650.0047,000.00239,750.0018,600.004,650.002,538.00376.00✓ASSETSLIABIL↑↑↑↑↑↑↑↑

Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…

Answered: a. Journalize the entry to record the…

a. Journalize the entry to record the payroll for the week of June 17. b. Journalize the entry to record the payroll tax expense incurred for the week of June 17.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Payroll Entries

Payroll is a comprehensive record of employees that are paid by the company. Payroll classifies employees into various categories according to their function and pays scale (basic wage, allowance, income tax, other taxes, employee loans, etc.). Payroll processes form the bedrock of every organization as it contains sensitive information on the ‘wage and paycheck’ portion of the company’s strength—its employees. The organization needs to keep a track of the employees currently on the payroll, the net payout for the company, the record of transactions related to the employees including deductions and payroll taxes to identify the liability and its effect on the balance sheet (and other financial statements). Payroll records also include qualitative factors such as the conduct of the employee.

Question

I'm not sure how I am calculating State Unemployment Tax Payable, Federal Unemployment Tax Payable, and Payroll Tax Expense incorrect.

Payroll entries
Instructions
Instructions
Widmer Company had gross wages of $310,000 during the week ended June 17. The amount of wages subject to social security tax was
$310,000, while the amount of wages subject to federal and state unemployment taxes was $35,000. Tax rates are as follows:
Social security
Chart of Accounts General Journal
Medicare
State unemployment
Federal unemployment
6.0%
1.5%
5.4%
0.8%
The total amount withheld from employee wages for federal taxes $47,0
Required:
a. Journalize the entry to record the payroll for the week of June 17.
b. Journalize the entry to record the payroll tax expense incurred for the week of June 17.

Instructions
General Journal
DATE
✓
Jun. 17 Wages Expense
DESCRIPTION
Social Security Tax Payable
Medicare Tax Payable
Employees Federal Income Tax Payable
Wages Payable
✓
Jun. 17 Payroll Tax Expense
Social Security Tax Payable
Medicare Tax Payable
State Unemployment Tax Payable
Federal Unemployment Tax Payable
JOURNAL
✓
✓
✓
✓
✓
✓
POST. REF.
DEBIT
310,000.00
21,514.00
✓
Shaded cells have feedback.
ACCOUNTIN
Score: 117/123
CREDIT
18,600.00
4,650.00
47,000.00
239,750.00
18,600.00
4,650.00
2,538.00
376.00
✓
ASSETS
LIABIL
↑
↑
↑
↑
↑
↑
↑
↑

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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