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For the year ended December 31, 2022. Concord Electrical Repair Company reports the following summary payroll data. Gross earnings: Administrative salaries $188,000 Electrician's wages 342,000 Total 530,000 Deductions: FICA taxes $35,027 Federal income taxes withheld 160,000 State income taxes withheld (3%) 15,900 United Fund contributions payable 25,570 Health insurance premiums 19,500 Total $255,997 Concord's payroll taxes are Social Security tax 6.2%, Medicare tax 1.45%, state unemployment 2.5% (due to a stable employment record), and 0.6% federal unemployment. Gross earnings subject to Social Security taxes of 6.2% total $441,000, and gross earnings subject to unemployment taxes total $136,000. No employee exceeds the $132,900 limit related to FICA taxes. (a) Prepare a summary journal entry at December 31 for the full year's payroll. (b) Journalize the adjusting entry at December 31 to record the employer's payroll taxes.

For the year ended December 31, 2022. Concord Electrical Repair Company reports the following summary payroll data. Gross earnings: Administrative salaries $188,000 Electrician's wages 342,000 Total 530,000 Deductions: FICA taxes $35,027 Federal income taxes withheld 160,000 State income taxes withheld (3%) 15,900 United Fund contributions payable 25,570 Health insurance premiums 19,500 Total $255,997 Concord's payroll taxes are Social Security tax 6.2%, Medicare tax 1.45%, state unemployment 2.5% (due to a stable employment record), and 0.6% federal unemployment. Gross earnings subject to Social Security taxes of 6.2% total $441,000, and gross earnings subject to unemployment taxes total $136,000. No employee exceeds the $132,900 limit related to FICA taxes. (a) Prepare a summary journal entry at December 31 for the full year's payroll. (b) Journalize the adjusting entry at December 31 to record the employer's payroll taxes.

FINANCIAL ACCOUNTING
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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For the year ended December 31, 2022. Concord Electrical Repair Company reports the following summary payroll data.

Gross earnings:

Administrative salaries $188,000
Electrician's wages 342,000
Total 530,000

Deductions:

FICA taxes $35,027
Federal income taxes withheld 160,000
State income taxes withheld (3%) 15,900
United Fund contributions payable 25,570
Health insurance premiums 19,500
Total $255,997

Concord's payroll taxes are Social Security tax 6.2%, Medicare tax 1.45%, state unemployment 2.5% (due to a stable employment record), and 0.6% federal unemployment. Gross earnings subject to Social Security taxes of 6.2% total $441,000, and gross earnings subject to unemployment taxes total $136,000. No employee exceeds the $132,900 limit related to FICA taxes.

(a) Prepare a summary journal entry at December 31 for the full year's payroll.

(b) Journalize the adjusting entry at December 31 to record the employer's payroll taxes.

For the year ended December 31, 2022, Concord Electrical Repair Company reports the following summary payroll data. Gross earnings: Administrative salaries Electricians' wages Deductions: FICA taxes Federal income taxes withheld State income taxes withheld (3%) United Fund contributions payable Health insurance premiums (b) Total Total (a) (b) Concord's payroll taxes are Social Security tax 6.2%, Medicare tax 1.45%, state unemployment 2.5% (due to a stable employment record), and 0.6% federal unemployment. Gross earnings subject to Social Security taxes of 6.2% total $441,000, and gross earnings subject to unemployment taxes total $136,000. No employee exceeds the $132,900 limit related to FICA taxes. No. Account Titles and Explanation Salarles and Wages Expense FICA Taxes Payable Federal Income Taxes Payable $188,000 (Round answers to O decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) State Income Taxes Payable Prepare a summary journal entry at December 31 for the full year's payroll. Journalize the adjusting entry at December 31 to record the employer's payroll taxes. $530,000 Health Insurance Payable 342,000 Salarles and Wages Payable United Fund Contributions Payable Payroll Tax Expense $35,027 $255,997 160,000 15,900 25,570 19,500 Debit 530000 Credit 35027 160000 15900 25570 19500 274003
Transcribed Image Text:For the year ended December 31, 2022, Concord Electrical Repair Company reports the following summary payroll data. Gross earnings: Administrative salaries Electricians' wages Deductions: FICA taxes Federal income taxes withheld State income taxes withheld (3%) United Fund contributions payable Health insurance premiums (b) Total Total (a) (b) Concord's payroll taxes are Social Security tax 6.2%, Medicare tax 1.45%, state unemployment 2.5% (due to a stable employment record), and 0.6% federal unemployment. Gross earnings subject to Social Security taxes of 6.2% total $441,000, and gross earnings subject to unemployment taxes total $136,000. No employee exceeds the $132,900 limit related to FICA taxes. No. Account Titles and Explanation Salarles and Wages Expense FICA Taxes Payable Federal Income Taxes Payable $188,000 (Round answers to O decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) State Income Taxes Payable Prepare a summary journal entry at December 31 for the full year's payroll. Journalize the adjusting entry at December 31 to record the employer's payroll taxes. $530,000 Health Insurance Payable 342,000 Salarles and Wages Payable United Fund Contributions Payable Payroll Tax Expense $35,027 $255,997 160,000 15,900 25,570 19,500 Debit 530000 Credit 35027 160000 15900 25570 19500 274003
(a) (b) Salaries and Wages Expense k FICA Taxes Payable Federal Income Taxes Payable State Income Taxes Payable United Fund Contributions Payable Health Insurance Payable Salaries and Wages Payable Payroll Tax Expense FICA Taxes Payable Federal Unemployment Taxes Payable (c) The W-2 Wage and Tax Statement requires the following dollar data. Complete the required data for the following employees. (Round answers to O decimal places, e.g. 5,275.) Wages, Tips, Other Compensation $54,000 26,000 Federal Income Tax Withheld State Income Tax Withheld $26,460 $ 10,140 1620 530000 780 FICA Wages 54000 26000 +A 35027 160000 15900 25570 19500 274003 35027 FICA Tax Withheld 4131
Transcribed Image Text:(a) (b) Salaries and Wages Expense k FICA Taxes Payable Federal Income Taxes Payable State Income Taxes Payable United Fund Contributions Payable Health Insurance Payable Salaries and Wages Payable Payroll Tax Expense FICA Taxes Payable Federal Unemployment Taxes Payable (c) The W-2 Wage and Tax Statement requires the following dollar data. Complete the required data for the following employees. (Round answers to O decimal places, e.g. 5,275.) Wages, Tips, Other Compensation $54,000 26,000 Federal Income Tax Withheld State Income Tax Withheld $26,460 $ 10,140 1620 530000 780 FICA Wages 54000 26000 +A 35027 160000 15900 25570 19500 274003 35027 FICA Tax Withheld 4131
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