Payroll and Payroll Taxes Rand Company\'s payroll on December 31 of the current

Question

Payroll and Payroll Taxes

Rand Company's payroll on December 31 of the current year is as follows:

This is what I already have for journal entries, just need one:

Payroll

Salaries Expense    $500,000

Federal Income Tax Withhold Payable  $85,000

FICA Taxes Payable  ?

Union Dues Payable  $10,000

Cash (Wages Payable)  ?

Payroll Tax Expense

Payroll Tax Expense $18,000

FICA Taxes Payable $12,000

Federal Unemployment Taxes Payable $600

State Unemployment Taxes Payable $5,400

I need to know what is FICA Taxes Payable amount and Cash (Wages Payable)?

Explanation / Answer

Hi,

Please find the answer as follows:

FICA Tax Employees (350000*.06) = 21000

FICA Tax Employer (350000*.08) = 28000

Total FICA Tax Payable = 21000 + 28000 = 49000

Cash Wages Payable = 500000 (Salaries Expense) - 85000 (Federal Income Tax Withhold Payable) - 49000 (FICA Tax Payable) - 10000 (Union Dues Payable) = 356000

Thanks.

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