Accounting for payroll and payroll taxesElectronics Service Co. pays salaries monthly on the last day of the month. The following information is available fromElectronics for the month ended December 31, 2016:Administrative salaries$96,000Sales salaries57,000Office salaries38,000Assume the Social Security tax rate is 6 percent on the first $110,000 of salaries. Duke reached the $110,000 amount inSeptember. Hilis salary in December amounted to S11,500 and is included in the $96,000. No one else will reach the$110,000 amount for the year. None of the employee salaries are subject to unemployment tax in December.Other amounts withheld from salaries in December were as follows:Federal income tax S21,500State incomne tax11,200Employee savings plan 4,000Requireda. Prepare the journal entry to record the payment of payroll on December 31, 2016.b. Prepare the journal entry to record the payroll tax expense for Electronics Service Co. for December 2016.4 0196/11 ratings) for this solution

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Required a. Prepare the journal entry to record the payment of payroll on December 31, 2016. b. Prepare the journal entry to record the payroll tax expense for Electronics Service Co. for December 2016.

Required a. Prepare the journal entry to record the payment of payroll on December 31, 2016. b. Prepare the journal entry to record the payroll tax expense for Electronics Service Co. for December 2016.

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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