Widmer Company had gross wages of $370,000 during the week ended June 17. 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% 0.8% 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 June 17. b. Journalize the entry to record the payroll tax expense incurred for the week June 17.
Widmer Company had gross wages of $370,000 during the week ended June 17. 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% 0.8% 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 June 17. b. Journalize the entry to record the payroll tax expense incurred for the week June 17.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Instructions
Widmer Company had gross wages of $370,000 during the week ended June 17. 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%
0.8%
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 June 17.
b. Journalize the entry to record the payroll tax expense incurred for the week of June 17.
Transcribed Image Text:General Journal
General Journal Instructions
1
2
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a. Journalize the entry to record the payroll for the week of June 17.
b. Journalize the entry to record the payroll tax expense incurred for the week of June 17.
10
DATE
DESCRIPTION
JOURNAL
POST. REF.
DEBIT
CREDIT
ACCOUNTING FOLIATION.
ASSETS
PAGE 11
LIABILITIES
EQUITY
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