The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co.: Required: 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): a. December 30, to record the payroll. b. December 30, to record the employer’s payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $44,000 is subject to unemployment compensation taxes. 2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): a. On page 11 of the journal: December 30, to record the payroll. b. On page 12 of the journal: January 5, to record the employer's payroll taxes on the payroll to be paid on January 5. Since it is a new fiscal year, all $652,000 in salaries is subject to unemployment compensation taxes. 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): a. December 30, to record the payroll. b. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $44,000 is subject to unemployment compensation taxes.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question

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

Required:
1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):
a. December 30, to record the payroll.
b. December 30, to record the employer’s payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $44,000 is subject to unemployment compensation taxes.
2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):
a. On page 11 of the journal: December 30, to record the payroll.
b. On page 12 of the journal: January 5, to record the employer's payroll taxes on the payroll to be paid on January 5. Since it is a new fiscal year, all $652,000 in salaries is subject to unemployment compensation taxes.

1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):
a. December 30, to record the payroll.
b. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $44,000 is subject to unemployment compensation taxes.

Instructions
Chart of Accounts
The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co.:
CHART OF ACCOUNTS
Boltz Co.
Salaries:
Deductions:
General Ledger
Sales salaries
$325,000 Income tax withheld $119,000
Warehouse salaries 196,000 U.S. savings bonds
14,344
ASSETS
REVENUE
Office salaries
131,000 Group insurance
11,736
110 Cash
410 Sales
$652,000
111 Accounts Receivable
610 Interest Revenue
112 Interest Receivable
113 Notes Receivable
EXPENSES
Tax rates assumed:
115 Inventory
510 Cost of Goods Sold
Social security 6%
State unemployment (employer only) 5.4%
116 Supplies
520 Sales Salaries Expense
Medicare
1.5% Federal unemployment (employer only) 0.8%
118 Prepaid Insurance
521 Warehouse Salaries Expense
120 Land
522 Office Salaries Expense
Required:
123 Building
524 Depreciation Expense-Building
1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of
124 Accumulated Depreciation-Building
525 Delivery Expense
Accounts for exact wording of account titles):
125 Office Equipment
526 Repairs Expense
a. December 30, to record the payroll.
126 Accumulated Depreciation-Office Equipment
529 Selling Expenses
b. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the
531 Rent Expense
year, $44,000 is subject to unemployment compensation taxes.
LIABILITIES
532 Depreciation Expense-Office Equipment
2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries
210 Accounts Payable
533 Insurance Expense
(refer to the Chart of Accounts for exact wording of account titles):
213 Interest Payable
534 Supplies Expense
a. On page 11 of the journal: December 30, to record the payroll.
214 Notes Payable
535 Payroll Tax Expense
b. On page 12 of the journal: January 5, to record the employer's payroll taxes on the payroll to be paid on January 5. Since it is a new fiscal
215 Salaries Payable
536 Vacation Pay Expense
year, all $652,000 in salaries is subject to unemployment compensation taxes.
216 Social Security Tax Payable
537 Pension Expense
217 Medicare Tax Payable
538 Cash Short and Over
Journal
218 Employees Income Tax Payable
540 Miscellaneous Expense
220 Group Insurance Payable
710 Interest Expense
Scroll down to access additional pages of the journal.
221 U.S. Saving Bond Deductions Payable
222 Union Dues Payable
1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of
223 Retirement Savings Deductions Payable
Accounts for exact wording of account titles):
224 Federal Unemployment Tax Payable
a. December 30, to record the payroll.
225 State Unemployment Tax Payable
b. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the
226 Vacation Pay Payable
year, $44,000 is subject to unemployment compensation taxes.
227 Unfunded Pension Liability
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
Transcribed Image Text:Instructions Chart of Accounts The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co.: CHART OF ACCOUNTS Boltz Co. Salaries: Deductions: General Ledger Sales salaries $325,000 Income tax withheld $119,000 Warehouse salaries 196,000 U.S. savings bonds 14,344 ASSETS REVENUE Office salaries 131,000 Group insurance 11,736 110 Cash 410 Sales $652,000 111 Accounts Receivable 610 Interest Revenue 112 Interest Receivable 113 Notes Receivable EXPENSES Tax rates assumed: 115 Inventory 510 Cost of Goods Sold Social security 6% State unemployment (employer only) 5.4% 116 Supplies 520 Sales Salaries Expense Medicare 1.5% Federal unemployment (employer only) 0.8% 118 Prepaid Insurance 521 Warehouse Salaries Expense 120 Land 522 Office Salaries Expense Required: 123 Building 524 Depreciation Expense-Building 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of 124 Accumulated Depreciation-Building 525 Delivery Expense Accounts for exact wording of account titles): 125 Office Equipment 526 Repairs Expense a. December 30, to record the payroll. 126 Accumulated Depreciation-Office Equipment 529 Selling Expenses b. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the 531 Rent Expense year, $44,000 is subject to unemployment compensation taxes. LIABILITIES 532 Depreciation Expense-Office Equipment 2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries 210 Accounts Payable 533 Insurance Expense (refer to the Chart of Accounts for exact wording of account titles): 213 Interest Payable 534 Supplies Expense a. On page 11 of the journal: December 30, to record the payroll. 214 Notes Payable 535 Payroll Tax Expense b. On page 12 of the journal: January 5, to record the employer's payroll taxes on the payroll to be paid on January 5. Since it is a new fiscal 215 Salaries Payable 536 Vacation Pay Expense year, all $652,000 in salaries is subject to unemployment compensation taxes. 216 Social Security Tax Payable 537 Pension Expense 217 Medicare Tax Payable 538 Cash Short and Over Journal 218 Employees Income Tax Payable 540 Miscellaneous Expense 220 Group Insurance Payable 710 Interest Expense Scroll down to access additional pages of the journal. 221 U.S. Saving Bond Deductions Payable 222 Union Dues Payable 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of 223 Retirement Savings Deductions Payable Accounts for exact wording of account titles): 224 Federal Unemployment Tax Payable a. December 30, to record the payroll. 225 State Unemployment Tax Payable b. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the 226 Vacation Pay Payable year, $44,000 is subject to unemployment compensation taxes. 227 Unfunded Pension Liability EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 7 images

Blurred answer
Knowledge Booster
Journal entries
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education