Chapter 10, Problem 10.1bDIE

(a)

To determine

Salaries and wages payable

Salaries and wages payable is a payment made to an employee for completion of work allocated by the company. Gross pay is computed by using normal hours worked by the employee with hourly wages rate.

Payroll tax

The costs incurred by an employer to pay the employee for his labor, including other employee benefits, plus the payroll taxes the employer pays to the government, are called payroll tax.

To prepare: The journal entry to record salaries and wages expenses of as on February 28.

(b)

To determine

To prepare: The journal entry to record the payroll taxes as on 28^th February.