Chapter 9, Problem 9.2E

Recording Payroll Costs

Paul Company completed the salary and wage payroll for the month of March. The payroll provided the following details:

Salaries and wages earned by employees	$200,000
Employee income taxes withheld	40,000
Employee government insurance premiums withheld	1,000
FICA payroll taxes*	15,000

*$15,000 each for employer and employees.

Required:

1. 1. Provide the journal entry to record the payroll for March, including employee deductions. Assume employees have been paid, but that Paul has yet to transfer any withholdings to the government.
2. 2. Provide the journal entry to record the employer’s payroll taxes, which have not yet been paid to the government.
3. 3. Provide a combined journal entry to show the payment of all amounts owed to governmental agencies.