Entries for Payroll and Payroll TaxesThe following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co.: Salaries: Deductions: Sales salaries$171,000 Income tax withheld$61,952 Warehouse salaries94,000 U.S. savings bonds7,744 Office salaries87,000 Group insurance6,336 $352,000 Tax rates assumed: Social security, 6% Medicare, 1.5% State unemployment (employer only), 5.4% Federal unemployment (employer only), 0.8% Required:If an amount box does not require an entry, leave it blank.1a. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30 to record the payroll.DateAccountDebitCreditDec. 30Sales Salaries Expense Warehouse Salaries Expense Office Salaries Expense Employees Income Tax Payable Social Security Tax Payable Medicare Tax Payable Bond Deductions Payable Group Insurance Payable Salaries Payable

Social Security Tax Payable = Gross salaries x Social security tax rate = $352,000*6% = $21,120…

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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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Entries for Payroll and Payroll Taxes

The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co.:

Salaries:			Deductions:
	Sales salaries	$171,000		Income tax withheld	$61,952
	Warehouse salaries	94,000		U.S. savings bonds	7,744
	Office salaries	87,000		Group insurance	6,336
	$352,000

Tax rates assumed:
	Social security, 6%
	Medicare, 1.5%
	State unemployment (employer only), 5.4%
	Federal unemployment (employer only), 0.8%

Required:

If an amount box does not require an entry, leave it blank.

1a. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30 to record the payroll.

Date	Account	Debit	Credit
Dec. 30	Sales Salaries Expense
	Warehouse Salaries Expense
	Office Salaries Expense
	Employees Income Tax Payable
	Social Security Tax Payable
	Medicare Tax Payable
	Bond Deductions Payable
	Group Insurance Payable
	Salaries Payable

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