The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co.:**Salaries:**- Sales salaries: $330,000- Warehouse salaries: $180,000- Office salaries: $147,000**Total Salaries:** $657,000**Deductions:**- Income tax withheld: $116,600- U.S. savings bonds: $14,454- Group insurance: $11,826**Tax rates assumed:**- Social security: 6%- Medicare: 1.5%- State unemployment (employer only): 5.4%- Federal unemployment (employer only): 0.8%**Required:**1. **Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries:** (refer to the Chart of Accounts for exact wording of account titles): a. December 30, to record the payroll. b. December 30, to record the employer’s payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $31,000 is subject to unemployment compensation taxes.2. **Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries:** (refer to the Chart of Accounts for exact wording of account titles): a. On page 11 of the journal: December 30, to record the payroll. b. On page 12 of the journal: January 5, to record the employer’s payroll taxes on the payroll to be paid on January 5. Since it is a new fiscal year, all $657,000 in salaries is subject to unemployment compensation taxes.

As per the records of Boltz co. Salaries expenses are given. As per the requirement we have to pass…

Salaries: Deductions: Sales salaries $330,000 Income tax withheld $116,600 Warehouse salaries 180,000 U.S. savings bonds 14,454 Office salaries 147,000 Group insurance 11,826 S657,000 Tax rates assumed: Social security 6% State unemployment (employer only) 5.4% Medicare 1.5% Federal unemployment (employer only) 0.8%

Salaries: Deductions: Sales salaries $330,000 Income tax withheld $116,600 Warehouse salaries 180,000 U.S. savings bonds 14,454 Office salaries 147,000 Group insurance 11,826 S657,000 Tax rates assumed: Social security 6% State unemployment (employer only) 5.4% Medicare 1.5% Federal unemployment (employer only) 0.8%

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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