Required a. Prepare the journal entry to record the payment of payroll on December 31, Year 1. b. Prepare the journal entry to record the payroll tax expense for Electronics Service Company for December Year 1.

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter8: Payroll Accounting: Employee Earnings And Deductions
Section: Chapter Questions
Problem 7SEB: PAYROLL JOURN AL ENTRY Journalize the following data taken from the payroll register of Himes Bakery...
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Electronics Service Company pays salaries monthly on the last day of the month. The following information is available from Electronics for the month ended December 31, Year 1.

Administrative salaries $ 70,000
Sales salaries 59,000
Office salaries 46,000


Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries. Duke reached $110,000 before September. His salary in December amounted to $13,000 and is included in the $70,000. No one else will reach the $110,000 amount for the year. None of the employee salaries are subject to unemployment tax in December. Assume the Medicare tax rate is 1.5% of total salaries.
 
Other amounts withheld from salaries in December were as follows:

Federal income tax $ 20,000
State income tax 6,800
Employee savings plan 3,000


Required
a. Prepare the journal entry to record the payment of payroll on December 31, Year 1.
b. Prepare the journal entry to record the payroll tax expense for Electronics Service Company for December Year 1.

(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet
1
2
>
Record the entry for payment of payroll on December 31, Year 1.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
12/31
Administrative salaries expense
70,000
Record entry
Clear entry
View general journal
Transcribed Image Text:Journal entry worksheet 1 2 > Record the entry for payment of payroll on December 31, Year 1. Note: Enter debits before credits. Date General Journal Debit Credit 12/31 Administrative salaries expense 70,000 Record entry Clear entry View general journal
Journal entry worksheet
1
2
>
Record the entry for payroll tax expense for Electronics Service Company for
December Year 1.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
12/31
Record entry
Clear entry
View general journal
Transcribed Image Text:Journal entry worksheet 1 2 > Record the entry for payroll tax expense for Electronics Service Company for December Year 1. Note: Enter debits before credits. Date General Journal Debit Credit 12/31 Record entry Clear entry View general journal
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