The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co.: Salaries:   Deductions:   Sales salaries $325,000 Income tax withheld $116,200 Warehouse salaries 192,000 U.S. savings bonds 14,388 Office salaries 137,000 Group insurance 11,772 You are in Column Salaries: $654,000 You are in Column Deductions:             Tax rates assumed: Social security 6% State unemployment (employer only) 5.4% You are in Column Tax rates assumed:Medicare You are in Column Tax rates assumed:1.5% You are in Column Tax rates assumed:Federal unemployment (employer only) You are in Column Tax rates assumed: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, $45,000 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 $654,000 in salaries is subject to unemployment compensation taxes.         none X Chart of Accounts     CHART OF ACCOUNTS Boltz Co. General Ledger   ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment 126 Accumulated Depreciation-Office Equipment   LIABILITIES 210 Accounts Payable 213 Interest Payable 214 Notes Payable 215 Salaries Payable 216 Social Security Tax Payable 217 Medicare Tax Payable 218 Employees Income Tax Payable 220 Group Insurance Payable 221 U.S. Saving Bond Deductions Payable 222 Union Dues Payable 223 Retirement Savings Deductions Payable 224 Federal Unemployment Tax Payable 225 State Unemployment Tax Payable 226 Vacation Pay Payable 227 Unfunded Pension Liability   EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends   REVENUE 410 Sales 610 Interest Revenue   EXPENSES 510 Cost of Goods Sold 520 Sales Salaries Expense 521 Warehouse Salaries Expense 522 Office Salaries Expense 524 Depreciation Expense-Building 525 Delivery Expense 526 Repairs Expense 529 Selling Expenses 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Supplies Expense 535 Payroll Tax Expense 536 Vacation Pay Expense 537 Pension Expense 538 Cash Short and Over 540 Miscellaneous Expense 710 Interest Expense         none X Journal

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co.:
Salaries:   Deductions:  
Sales salaries $325,000 Income tax withheld $116,200
Warehouse salaries 192,000 U.S. savings bonds 14,388
Office salaries 137,000 Group insurance 11,772
You are in Column Salaries: $654,000 You are in Column Deductions:  
 
       
Tax rates assumed:
Social security 6% State unemployment (employer only) 5.4%
You are in Column Tax rates assumed:Medicare You are in Column Tax rates assumed:1.5% You are in Column Tax rates assumed:Federal unemployment (employer only) You are in Column Tax rates assumed: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, $45,000 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 $654,000 in salaries is subject to unemployment compensation taxes.
 
 
 
 
none
X
Chart of Accounts
 
 
CHART OF ACCOUNTS
Boltz Co.
General Ledger
  ASSETS
110 Cash
111 Accounts Receivable
112 Interest Receivable
113 Notes Receivable
115 Inventory
116 Supplies
118 Prepaid Insurance
120 Land
123 Building
124 Accumulated Depreciation-Building
125 Office Equipment
126 Accumulated Depreciation-Office Equipment
  LIABILITIES
210 Accounts Payable
213 Interest Payable
214 Notes Payable
215 Salaries Payable
216 Social Security Tax Payable
217 Medicare Tax Payable
218 Employees Income Tax Payable
220 Group Insurance Payable
221 U.S. Saving Bond Deductions Payable
222 Union Dues Payable
223 Retirement Savings Deductions Payable
224 Federal Unemployment Tax Payable
225 State Unemployment Tax Payable
226 Vacation Pay Payable
227 Unfunded Pension Liability
  EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
  REVENUE
410 Sales
610 Interest Revenue
  EXPENSES
510 Cost of Goods Sold
520 Sales Salaries Expense
521 Warehouse Salaries Expense
522 Office Salaries Expense
524 Depreciation Expense-Building
525 Delivery Expense
526 Repairs Expense
529 Selling Expenses
531 Rent Expense
532 Depreciation Expense-Office Equipment
533 Insurance Expense
534 Supplies Expense
535 Payroll Tax Expense
536 Vacation Pay Expense
537 Pension Expense
538 Cash Short and Over
540 Miscellaneous Expense
710 Interest Expense
 
 
 
 
none
X
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