Entries for Payroll and Payroll Taxes The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.: Salaries: Deductions: Sales salaries $214,000 Income tax withheld $77,616 Warehouse salaries 118,000 Social security tax withheld 26,460 Office salaries 109,000 Medicare tax withheld 6,615 $441,000 Retirement savings 9,702 Group insurance 7,938 $128,331 Tax rates assumed: Social security, 6% Medicare, 1.5% State unemployment (employer only), 5.4% Federal unemployment (employer only), 0.6% Required: If an amount box does not require an entry, leave it blank. 1a. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30 to record the payroll. Date Dec. 30 Account Debit Credit 1b. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30 to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payrol for the last week of the year, $22,000 is subject to unemployment compensation taxes. Date Dec. 30 Account Debit Credit 2a. Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year, journalize the entry on December 30 to record the payroll. Date Dec. 30 Account Debit Credit 2b. Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year, journalize the entry to record the employer's payroll taxes on the payroll to be paid on January 4. Because it is a new fiscal year, all $441,000 in salaries is subject to unemployment compensation taxes.
Entries for Payroll and Payroll Taxes The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.: Salaries: Deductions: Sales salaries $214,000 Income tax withheld $77,616 Warehouse salaries 118,000 Social security tax withheld 26,460 Office salaries 109,000 Medicare tax withheld 6,615 $441,000 Retirement savings 9,702 Group insurance 7,938 $128,331 Tax rates assumed: Social security, 6% Medicare, 1.5% State unemployment (employer only), 5.4% Federal unemployment (employer only), 0.6% Required: If an amount box does not require an entry, leave it blank. 1a. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30 to record the payroll. Date Dec. 30 Account Debit Credit 1b. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30 to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payrol for the last week of the year, $22,000 is subject to unemployment compensation taxes. Date Dec. 30 Account Debit Credit 2a. Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year, journalize the entry on December 30 to record the payroll. Date Dec. 30 Account Debit Credit 2b. Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year, journalize the entry to record the employer's payroll taxes on the payroll to be paid on January 4. Because it is a new fiscal year, all $441,000 in salaries is subject to unemployment compensation taxes.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Entries for Payroll and Payroll Taxes
The following information about the payroll for the week ended December 30 was obtained from the records of
Saine Co.:
Salaries:
Deductions:
Sales salaries
$214,000
Income tax withheld
$77,616
Warehouse salaries
118,000
Social security tax withheld
26,460
Office salaries
109,000
Medicare tax withheld
6,615
$441,000
Retirement savings
9,702
Group insurance
7,938
$128,331
Tax rates assumed:
Social security, 6%
Medicare, 1.5%
State unemployment (employer only), 5.4%
Federal unemployment (employer only), 0.6%
Required:
If an amount box does not require an entry, leave it blank.
1a. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on
December 30 to record the payroll.
Date
Dec. 30
Account
Debit
Credit
Transcribed Image Text:1b. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on
December 30 to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payrol
for the last week of the year, $22,000 is subject to unemployment compensation taxes.
Date
Dec. 30
Account
Debit
Credit
2a. Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year,
journalize the entry on December 30 to record the payroll.
Date
Dec. 30
Account
Debit
Credit
2b. Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year,
journalize the entry to record the employer's payroll taxes on the payroll to be paid on January 4. Because it is a
new fiscal year, all $441,000 in salaries is subject to unemployment compensation taxes.
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