Urban Window Company had gross wages of $370,000 during the week ended July 15. The amount of wages subject to social security tax was $370,000, while the amount of wages subject to federal and state unemployment taxes was $30,000. Tax rates are as follows: Social security Medicare State unemployment Federal unemployment 6.0% 1.5% 5.4% 0.6% The total amount withheld from employee wages for federal taxes was $43,000. Required: A. Journalize the entry to record the payroll for the week of July 15.* B. Journalize the entry to record the payroll tax expense incurred for the week of July 15.* *Refer to the Chart of Accounts for exact wording of account titles.
Urban Window Company had gross wages of $370,000 during the week ended July 15. The amount of wages subject to social security tax was $370,000, while the amount of wages subject to federal and state unemployment taxes was $30,000. Tax rates are as follows: Social security Medicare State unemployment Federal unemployment 6.0% 1.5% 5.4% 0.6% The total amount withheld from employee wages for federal taxes was $43,000. Required: A. Journalize the entry to record the payroll for the week of July 15.* B. Journalize the entry to record the payroll tax expense incurred for the week of July 15.* *Refer to the Chart of Accounts for exact wording of account titles.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Payroll entries
Instructions
Instructions
Chart of Accounts Journal
Urban Window Company had gross wages of $370,000 during the week ended July 15. The
amount of wages subject to social security tax was $370,000, while the amount of wages
subject to federal and state unemployment taxes was $30,000. Tax rates are as follows:
Social security
Medicare
State unemployment
Federal unemployment
6.0%
1.5%
5.4%
0.6%
The total amount withheld from employee wages for federal taxes was $43,000.
Required:
A. Journalize the entry to record the payroll for the week of July 15.*
B. Journalize the entry to record the payroll tax expense incurred for the week of
July 15.*
*Refer to the Chart of Accounts for exact wording of account titles.
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