The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.: Salaries: Deductions: Sales salaries $174,000 Federal income tax withheld $63,184 Warehouse salaries 96,000 Social security tax withheld 21,540 Office salaries 89,000 Medicare tax withheld 5,385 $359,000 Retirement savings 7,898 Group insurance 6,462 $104,469 Tax rates assumed: Social security, 6% Medicare, 1.5% State unemployment (employer only), 5.4% Federal unemployment (employer only), 0.6%
The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.:
| Salaries: | Deductions: | |||||
| Sales salaries | $174,000 | Federal income tax withheld | $63,184 | |||
| Warehouse salaries | 96,000 | Social security tax withheld | 21,540 | |||
| Office salaries | 89,000 | Medicare tax withheld | 5,385 | |||
| $359,000 | Retirement savings | 7,898 | ||||
| Group insurance | 6,462 | |||||
| $104,469 |
| Tax rates assumed: | |
| Social security, 6% | |
| Medicare, 1.5% | |
| State |
|
| Federal unemployment (employer only), 0.6% |
Required:
If an amount box does not require an entry, leave it blank.
1a. Assuming that the payroll for the last week of the year is to be paid on December 31,
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| Dec. 30 |
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1b. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on 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, $18,000 is subject to unemployment compensation taxes.
| Date | Account | Debit | Credit |
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| Dec. 30 |
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2a. Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year, journalize the entry on December 30, to record the payroll.
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| Dec. 30 |
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2b. Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year, journalize the entry to record the employer's payroll taxes on the payroll to be paid on January 4. Because it is a new fiscal year, all $359,000 in salaries is subject to unemployment compensation taxes.
| Date | Account | Debit | Credit |
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