None During the month of February, Ivanhoe Corporation's employees earned wages of $73,700. Withholdings related to these wages were$5,638 for FICA, $7,070 for federal income tax, and $1,800 for state income tax. Costs incurred for unemployment taxes were $130for federal and $180 for state.(a)Prepare the February 28 journal entry for salaries and wages expense and salaries and wages payable assuming that all Februarywages will be paid in March. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entryis required, select "No Entry" for the account titles and enter O for the amounts.)Date Account Titles and ExplanationFeb. 28DebitCredit(b)(To record February 28 payroll)Prepare the February 28 journal entry for the company's payroll tax expense. (Credit account titles are automatically indented when theamount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)Date Account Titles and ExplanationFeb. 28(To record employer's payroll taxes)eTextbook and MediaList of AccountsDebitCredit

Accounting journals are used to keep track of business transactions before posting them to the…

During the month of February, Ivanhoe Corporation's employees earned wages of $73,700. Withholdings related to these wages were $5,638 for FICA, $7,070 for federal income tax, and $1,800 for state income tax. Costs incurred for unemployment taxes were $130 for federal and $180 for state.

During the month of February, Ivanhoe Corporation's employees earned wages of $73,700. Withholdings related to these wages were $5,638 for FICA, $7,070 for federal income tax, and $1,800 for state income tax. Costs incurred for unemployment taxes were $130 for federal and $180 for state.

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

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During the month of February, Ivanhoe Corporation's employees earned wages of $73,700. Withholdings related to these wages were
$5,638 for FICA, $7,070 for federal income tax, and $1,800 for state income tax. Costs incurred for unemployment taxes were $130
for federal and $180 for state.
(a)
Prepare the February 28 journal entry for salaries and wages expense and salaries and wages payable assuming that all February
wages will be paid in March. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entry
is required, select "No Entry" for the account titles and enter O for the amounts.)
Date Account Titles and Explanation
Feb. 28
Debit
Credit
(b)
(To record February 28 payroll)
Prepare the February 28 journal entry for the company's payroll tax expense. (Credit account titles are automatically indented when the
amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Date Account Titles and Explanation
Feb. 28
(To record employer's payroll taxes)
eTextbook and Media
List of Accounts
Debit
Credit

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