Recording Payroll and Payroll Taxes The following data are taken from Fremont Wholesale Company's May payroll: Administrative salaries Sales salaries $37,400 51,700 Custodial salaries Total payroll Salaries subject to 1.45 percent Medicare tax Salaries subject to 6.2 percent Social Security tax Salaries subject to federal unemployment taxes Salaries subject to state unemployment taxes Federal income taxes withheld from all salaries 7,700 $96,800 $96,800 81,400 15,400 22,000 19,580 Assume that the company is subject to a two percent state unemployment tax (due to a favorable experience rating) and a 0.6 percent federal unemployment tax. Required Record the following in general journal form on May 31: a. Accrual of the monthly payroll. b. Payment of the net payroll. c. Accrual of employer's payroll taxes. (Assume that the FICA matches the amount withheld.) d. Payment of these payroll-related liabilities. (Assume that all are settled at the same time.) Round your answers to the nearest dollar. Part A Part B Part C Part D Date General Journal Description May 31 Federal Income Tax Withholding Payable Debit Credit 0

Recording Payroll and Payroll Taxes The following data are taken from Fremont Wholesale Company's May payroll: Administrative salaries Sales salaries $37,400 51,700 Custodial salaries Total payroll Salaries subject to 1.45 percent Medicare tax Salaries subject to 6.2 percent Social Security tax Salaries subject to federal unemployment taxes Salaries subject to state unemployment taxes Federal income taxes withheld from all salaries 7,700 $96,800 $96,800 81,400 15,400 22,000 19,580 Assume that the company is subject to a two percent state unemployment tax (due to a favorable experience rating) and a 0.6 percent federal unemployment tax. Required Record the following in general journal form on May 31: a. Accrual of the monthly payroll. b. Payment of the net payroll. c. Accrual of employer's payroll taxes. (Assume that the FICA matches the amount withheld.) d. Payment of these payroll-related liabilities. (Assume that all are settled at the same time.) Round your answers to the nearest dollar. Part A Part B Part C Part D Date General Journal Description May 31 Federal Income Tax Withholding Payable Debit Credit 0

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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