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 $625,000 Income tax withheld $232,260 Warehouse salaries 240,000 U.S. savings bonds 35,500 Office salaries 320,000 Group insurance 53,325 $1,185,000 Tax rates assumed: Social security, 6% Medicare, 1.5% State unemployment (employer only), 5.4% Federal unemployment (employer only), 0.8% 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. 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. Dec. 30 1. Cash Employees Income Tax Expense Medicare Tax Payable Sales Salaries Expense Sales Salaries Payable 2. Cash Medicare Tax Payable Social Security Tax Payable Warehouse Salaries Expense Warehouse Salaries Payable 3. Cash Employees Income Tax Expense Office Salaries Expense Office Salaries Payable S. Savings Bond Deductions Payable 4. Cash Employees Income Tax Expense Employees Income Tax Payable Office Salaries Expense Warehouse Salaries Expense 5. Cash Sales Salaries Expense Social Security Tax Expense Social Security Tax Payable Warehouse Salaries Expense 6. Cash Medicare Tax Expense Medicare Tax Payable Office Salaries Expense Sales Salaries Expense 7. Bond Deductions Expense Cash Office Salaries Expense S. Savings Bond Deductions Payable Warehouse Salaries Expense 8. Accounts Payable Group Insurance Expense Group Insurance Payable Office Salaries Expense Sales Salaries Expense 9 Accounts Receivable Office Salaries Expense Salaries Payable Sales Salaries Expense Warehouse Salaries Expense 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 payroll for the last week of the year, $30,000 is subject to unemployment compensation taxes. Dec. 30 1. Federal Unemployment Tax Payable Medicare Tax Payable Payroll Tax Expense Salaries Expense Social Security Tax Payable 2. Accounts Payable Federal Unemployment Tax Expense Payroll Tax Expense Payroll Tax Payable Social Security Tax Payable 3. Cash Medicare Tax Expense Medicare Tax Payable Payroll Tax Expense Payroll Tax Payable 4. Cash Office Salaries Expense Salaries Payable State Unemployment Tax Expense State Unemployment Tax Payable 5. Cash Federal Unemployment Tax Expense Federal Unemployment Tax Payable Salaries Payable Warehouse Salaries Expense 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. Dec 30. 1. Cash Employees Income Tax Expense Medicare Tax Payable Sales Salaries Expense Sales Salaries Payable 2. Cash Medicare Tax Payable Social Security Tax Payable Warehouse Salaries Expense Warehouse Salaries Payable 3. Cash Employees Income Tax Expense Office Salaries Expense Office Salaries Payable S. Savings Bond Deductions Payable 4. Cash Employees Income Tax Expense Employees Income Tax Payable Office Salaries Expense Warehouse Salaries Expense 5. Cash Sales Salaries Expense Social Security Tax Expense Social Security Tax Payable Warehouse Salaries Expense 6. Cash Medicare Tax Expense Medicare Tax Payable Office Salaries Expense Sales Salaries Expense 7. Bond Deductions Expense Cash Office Salaries Expense S. Savings Bond Deductions Payable Warehouse Salaries Expense 8. Accounts Payable Group Insurance Expense Group Insurance Payable Office Salaries Expense Sales Salaries Expense 9. Accounts Receivable Office Salaries Expense Salaries Payable Sales Salaries Expense Warehouse Salaries Expense 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 on January 4, to record the employer's payroll taxes on the payroll to be paid on January 4. Because it is a new fiscal year, all $1,185,000 in salaries is subject to unemployment compensation taxes. Dec 30. 1. Federal Unemployment Tax Payable Medicare Tax Payable Payroll Tax Expense Salaries Expense Social Security Tax Payable 2. Accounts Payable Federal Unemployment Tax Expense Payroll Tax Expense Payroll Tax Payable Social Security Tax Payable 3. Cash Medicare Tax Expense Medicare Tax Payable Payroll Tax Expense Payroll Tax Payable 4. Cash Office Salaries Expense Salaries Payable State Unemployment Tax Expense State Unemployment Tax Payable 5. Cash Federal Unemployment Tax Expense Federal Unemployment Tax Payable Salaries Payable Warehouse Salaries Expense

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 $625,000 Income tax withheld $232,260 Warehouse salaries 240,000 U.S. savings bonds 35,500 Office salaries 320,000 Group insurance 53,325 $1,185,000 Tax rates assumed: Social security, 6% Medicare, 1.5% State unemployment (employer only), 5.4% Federal unemployment (employer only), 0.8% 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. 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. Dec. 30 1. Cash Employees Income Tax Expense Medicare Tax Payable Sales Salaries Expense Sales Salaries Payable 2. Cash Medicare Tax Payable Social Security Tax Payable Warehouse Salaries Expense Warehouse Salaries Payable 3. Cash Employees Income Tax Expense Office Salaries Expense Office Salaries Payable S. Savings Bond Deductions Payable 4. Cash Employees Income Tax Expense Employees Income Tax Payable Office Salaries Expense Warehouse Salaries Expense 5. Cash Sales Salaries Expense Social Security Tax Expense Social Security Tax Payable Warehouse Salaries Expense 6. Cash Medicare Tax Expense Medicare Tax Payable Office Salaries Expense Sales Salaries Expense 7. Bond Deductions Expense Cash Office Salaries Expense S. Savings Bond Deductions Payable Warehouse Salaries Expense 8. Accounts Payable Group Insurance Expense Group Insurance Payable Office Salaries Expense Sales Salaries Expense 9 Accounts Receivable Office Salaries Expense Salaries Payable Sales Salaries Expense Warehouse Salaries Expense 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 payroll for the last week of the year, $30,000 is subject to unemployment compensation taxes. Dec. 30 1. Federal Unemployment Tax Payable Medicare Tax Payable Payroll Tax Expense Salaries Expense Social Security Tax Payable 2. Accounts Payable Federal Unemployment Tax Expense Payroll Tax Expense Payroll Tax Payable Social Security Tax Payable 3. Cash Medicare Tax Expense Medicare Tax Payable Payroll Tax Expense Payroll Tax Payable 4. Cash Office Salaries Expense Salaries Payable State Unemployment Tax Expense State Unemployment Tax Payable 5. Cash Federal Unemployment Tax Expense Federal Unemployment Tax Payable Salaries Payable Warehouse Salaries Expense 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. Dec 30. 1. Cash Employees Income Tax Expense Medicare Tax Payable Sales Salaries Expense Sales Salaries Payable 2. Cash Medicare Tax Payable Social Security Tax Payable Warehouse Salaries Expense Warehouse Salaries Payable 3. Cash Employees Income Tax Expense Office Salaries Expense Office Salaries Payable S. Savings Bond Deductions Payable 4. Cash Employees Income Tax Expense Employees Income Tax Payable Office Salaries Expense Warehouse Salaries Expense 5. Cash Sales Salaries Expense Social Security Tax Expense Social Security Tax Payable Warehouse Salaries Expense 6. Cash Medicare Tax Expense Medicare Tax Payable Office Salaries Expense Sales Salaries Expense 7. Bond Deductions Expense Cash Office Salaries Expense S. Savings Bond Deductions Payable Warehouse Salaries Expense 8. Accounts Payable Group Insurance Expense Group Insurance Payable Office Salaries Expense Sales Salaries Expense 9. Accounts Receivable Office Salaries Expense Salaries Payable Sales Salaries Expense Warehouse Salaries Expense 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 on January 4, to record the employer's payroll taxes on the payroll to be paid on January 4. Because it is a new fiscal year, all $1,185,000 in salaries is subject to unemployment compensation taxes. Dec 30. 1. Federal Unemployment Tax Payable Medicare Tax Payable Payroll Tax Expense Salaries Expense Social Security Tax Payable 2. Accounts Payable Federal Unemployment Tax Expense Payroll Tax Expense Payroll Tax Payable Social Security Tax Payable 3. Cash Medicare Tax Expense Medicare Tax Payable Payroll Tax Expense Payroll Tax Payable 4. Cash Office Salaries Expense Salaries Payable State Unemployment Tax Expense State Unemployment Tax Payable 5. Cash Federal Unemployment Tax Expense Federal Unemployment Tax Payable Salaries Payable Warehouse Salaries Expense

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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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	$625,000		Income tax withheld	$232,260
	Warehouse salaries	240,000		U.S. savings bonds	35,500
	Office salaries	320,000		Group insurance	53,325
	$1,185,000

Tax rates assumed:
	Social security, 6%
	Medicare, 1.5%
	State unemployment (employer only), 5.4%
	Federal unemployment (employer only), 0.8%

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.

Dec. 30

Cash
Employees Income Tax Expense
Medicare Tax Payable
Sales Salaries Expense
Sales Salaries Payable

Cash
Medicare Tax Payable
Social Security Tax Payable
Warehouse Salaries Expense
Warehouse Salaries Payable

Cash
Employees Income Tax Expense
Office Salaries Expense
Office Salaries Payable
S. Savings Bond Deductions Payable

Cash
Employees Income Tax Expense
Employees Income Tax Payable
Office Salaries Expense
Warehouse Salaries Expense

Cash
Sales Salaries Expense
Social Security Tax Expense
Social Security Tax Payable
Warehouse Salaries Expense

Cash
Medicare Tax Expense
Medicare Tax Payable
Office Salaries Expense
Sales Salaries Expense

Bond Deductions Expense
Cash
Office Salaries Expense
S. Savings Bond Deductions Payable
Warehouse Salaries Expense

Accounts Payable
Group Insurance Expense
Group Insurance Payable
Office Salaries Expense
Sales Salaries Expense

Accounts Receivable
Office Salaries Expense
Salaries Payable
Sales Salaries Expense
Warehouse Salaries Expense

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 payroll for the last week of the year, $30,000 is subject to unemployment compensation taxes.

Dec. 30

Federal Unemployment Tax Payable
Medicare Tax Payable
Payroll Tax Expense
Salaries Expense
Social Security Tax Payable

Accounts Payable
Federal Unemployment Tax Expense
Payroll Tax Expense
Payroll Tax Payable
Social Security Tax Payable

Cash
Medicare Tax Expense
Medicare Tax Payable
Payroll Tax Expense
Payroll Tax Payable

Cash
Office Salaries Expense
Salaries Payable
State Unemployment Tax Expense
State Unemployment Tax Payable

Cash
Federal Unemployment Tax Expense
Federal Unemployment Tax Payable
Salaries Payable
Warehouse Salaries Expense

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.

Dec 30.

Cash
Employees Income Tax Expense
Medicare Tax Payable
Sales Salaries Expense
Sales Salaries Payable

Cash
Medicare Tax Payable
Social Security Tax Payable
Warehouse Salaries Expense
Warehouse Salaries Payable

Cash
Employees Income Tax Expense
Office Salaries Expense
Office Salaries Payable
S. Savings Bond Deductions Payable

Cash
Employees Income Tax Expense
Employees Income Tax Payable
Office Salaries Expense
Warehouse Salaries Expense

Cash
Sales Salaries Expense
Social Security Tax Expense
Social Security Tax Payable
Warehouse Salaries Expense

Cash
Medicare Tax Expense
Medicare Tax Payable
Office Salaries Expense
Sales Salaries Expense

Bond Deductions Expense
Cash
Office Salaries Expense
S. Savings Bond Deductions Payable
Warehouse Salaries Expense

Accounts Payable
Group Insurance Expense
Group Insurance Payable
Office Salaries Expense
Sales Salaries Expense

Accounts Receivable
Office Salaries Expense
Salaries Payable
Sales Salaries Expense
Warehouse Salaries Expense

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 on January 4, to record the employer's payroll taxes on the payroll to be paid on January 4. Because it is a new fiscal year, all $1,185,000 in salaries is subject to unemployment compensation taxes.

Dec 30.

Federal Unemployment Tax Payable
Medicare Tax Payable
Payroll Tax Expense
Salaries Expense
Social Security Tax Payable

Accounts Payable
Federal Unemployment Tax Expense
Payroll Tax Expense
Payroll Tax Payable
Social Security Tax Payable

Cash
Medicare Tax Expense
Medicare Tax Payable
Payroll Tax Expense
Payroll Tax Payable

Cash
Office Salaries Expense
Salaries Payable
State Unemployment Tax Expense
State Unemployment Tax Payable

Cash
Federal Unemployment Tax Expense
Federal Unemployment Tax Payable
Salaries Payable
Warehouse Salaries Expense

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
$625,000
Income tax withheld
$232,260
Warehouse salaries
240,000
U.S. savings bonds
35,500
Office salaries
320,000
Group insurance
53,325
$1,185,000
Tax rates assumed:
Social security, 6%
Medicare, 1.5%
State unemployment (employer only), 5.4%
Federal unemployment (employer only), 0.8%
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
Account
Debit
Credit
Dec. 30
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 payroll for the last week of the year, $30,000 is subject to unemployment compensation taxes.
Date
Account
Debit
Credit
Dec. 30

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 payroll for the last week of the year, $30,000 is subject to unemployment compensation taxes.
Date
Account
Debit
Credit
Dec. 30
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
Account
Debit
Credit
Dec. 30
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 on January 4, to record the employer's payroll taxes on the payroll to be paid on January 4. Because it is a new fiscal year, all $1,185,000 in salaries is subject to unemployment compensation taxes.
Date
Account
Debit
Credit
Jan. 4

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