(Learning Objective 4: Account for accrued payroll) Fitzgerald Company pays itsemployees every other Friday. December 31, 2017, was a Sunday. On Friday, January 5, 2018,Fitzgerald paid wages of $112,000, which covered the 14-day period from December 20, 2017,through January 2, 2018. Wages were earned evenly across all days, including Saturdays andSundays. Employee income taxes withheld for this payroll period totaled $15,610, while theFICA tax withheld was $12,600. (Ignore the employer payroll taxes in this exercise.) Preparethe entry to accrue the company’s wages and payroll taxes at December 31, 2017.
(Learning Objective 4: Account for accrued payroll) Fitzgerald Company pays itsemployees every other Friday. December 31, 2017, was a Sunday. On Friday, January 5, 2018,Fitzgerald paid wages of $112,000, which covered the 14-day period from December 20, 2017,through January 2, 2018. Wages were earned evenly across all days, including Saturdays andSundays. Employee income taxes withheld for this payroll period totaled $15,610, while theFICA tax withheld was $12,600. (Ignore the employer payroll taxes in this exercise.) Preparethe entry to accrue the company’s wages and payroll taxes at December 31, 2017.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(Learning Objective 4: Account for accrued payroll) Fitzgerald Company pays its
employees every other Friday. December 31, 2017, was a Sunday. On Friday, January 5, 2018,
Fitzgerald paid wages of $112,000, which covered the 14-day period from December 20, 2017,
through January 2, 2018. Wages were earned evenly across all days, including Saturdays and
Sundays. Employee income taxes withheld for this payroll period totaled $15,610, while the
FICA tax withheld was $12,600. (Ignore the employer payroll taxes in this exercise.) Prepare
the entry to accrue the company’s wages and payroll taxes at December 31, 2017.
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