The summary of the payroll for the monthly pay period ending July 15 indicated the following: Sales salaries$135,000Federal income tax withheld32,300Office salaries30,000Medical insurance withheld7,370Social security tax withheld10,200Medicare tax withheld2,550 Journalize the entries to record (a) the payroll and (b) the employer's payroll tax expense for the month. The state unemployment tax rate is 3.1%, and the federal unemployment tax rate is 0.8%. Only $30,000 of salaries are subject to unemployment taxes.

State Unemployment Tax Payable = Salaries Expense x state unemployment tax rate = 30000*3.1% = $930…

Answered: The summary of the payroll for the…

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 summary of the payroll for the monthly pay period ending July 15 indicated the following:

Sales salaries	$135,000
Federal income tax withheld	32,300
Office salaries	30,000
Medical insurance withheld	7,370
Social security tax withheld	10,200
Medicare tax withheld	2,550

Journalize the entries to record (a) the payroll and (b) the employer's payroll tax expense for the month. The state unemployment tax rate is 3.1%, and the federal unemployment tax rate is 0.8%. Only $30,000 of salaries are subject to unemployment taxes.

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