The following information about the payroll for the week ended December 30 was obtained from the records of KLM Co.: Salaries: Sales Salaries $350,000 Warehouse Salaries 180,000 Office Salaries 145,000 ____________ $675,000 Deductions: Income Tax Withheld $118,800 Social Security Tax Withheld 40,500 Medicare Tax Withheld 10.125 US Savings Bonds 14,850 Group Insurance 12.150 ______________ $196,425 Tax Rates Assumed: Social Security, 6% Medicare 1.5% State Unemployment (SUTA) 5.4% Federal Unemployment (FUTA) 0.6% Required: Prepare the journal entries to 1. Record the December 30 payroll 2. Record the employer’s payroll taxes. Assume that $35,000 is subject to unemployment compensation taxes
The following information about the payroll for the week ended December 30 was obtained from the records of KLM Co.: Salaries: Sales Salaries $350,000 Warehouse Salaries 180,000 Office Salaries 145,000 ____________ $675,000 Deductions: Income Tax Withheld $118,800 Social Security Tax Withheld 40,500 Medicare Tax Withheld 10.125 US Savings Bonds 14,850 Group Insurance 12.150 ______________ $196,425 Tax Rates Assumed: Social Security, 6% Medicare 1.5% State Unemployment (SUTA) 5.4% Federal Unemployment (FUTA) 0.6% Required: Prepare the journal entries to 1. Record the December 30 payroll 2. Record the employer’s payroll taxes. Assume that $35,000 is subject to unemployment compensation taxes
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following information about the payroll for the week ended December 30 was obtained from the records of KLM Co.:
Salaries:
Sales Salaries $350,000
Warehouse Salaries 180,000
Office Salaries 145,000
____________
$675,000
Deductions:
Income Tax Withheld $118,800
Social Security Tax Withheld 40,500
Medicare Tax Withheld 10.125
US Savings Bonds 14,850
Group Insurance 12.150
______________
$196,425
Tax Rates Assumed:
Social Security, 6%
Medicare 1.5%
State
Federal Unemployment (FUTA) 0.6%
Required:
Prepare the
1. Record the December 30 payroll
2. Record the employer’s payroll taxes. Assume that $35,000 is subject to unemployment compensation taxes
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