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The following monthly

The following monthly

FINANCIAL ACCOUNTING
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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The following monthly data are taken from a company's records at March 31: sales salaries, $700,000; office salaries, $140,000; federal income taxes withheld, $210,000; state income taxes withheld, $47,000; Social Security taxes withheld, $52,080; Medicare taxes withheld, $12,180; medical insurance premiums, $17,000; life insurance premiums, $14,000; union dues deducted, $11,000; and salaries subject to unemployment taxes, $70,000. The employee pays 40% of medical and life insurance premiums. Prepare journal entries to record (1) accrued payroll, including employee deductions, for March; (2) cash payment of the net payroll (salaries payable) for March; (3) accrued employer payroll taxes for March-assume that FICA taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%; (4) employee benefits expense for medical insurance and life insurance; and (5) cash payment of all payroll tax and benefit liabilities related to the March payroll. View transaction list View journal entry worksheet
Transcribed Image Text:The following monthly data are taken from a company's records at March 31: sales salaries, $700,000; office salaries, $140,000; federal income taxes withheld, $210,000; state income taxes withheld, $47,000; Social Security taxes withheld, $52,080; Medicare taxes withheld, $12,180; medical insurance premiums, $17,000; life insurance premiums, $14,000; union dues deducted, $11,000; and salaries subject to unemployment taxes, $70,000. The employee pays 40% of medical and life insurance premiums. Prepare journal entries to record (1) accrued payroll, including employee deductions, for March; (2) cash payment of the net payroll (salaries payable) for March; (3) accrued employer payroll taxes for March-assume that FICA taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%; (4) employee benefits expense for medical insurance and life insurance; and (5) cash payment of all payroll tax and benefit liabilities related to the March payroll. View transaction list View journal entry worksheet
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