Recording Payroll Costs McLoyd Company completed the salary and wage payroll for

Question

Recording Payroll Costs McLoyd Company completed the salary and wage payroll for March 2010. The payroll provided the following details:

Salaries and wages earned $ 230,000
Employee income taxes withheld 50,200
FICA taxes withheld 16,445
Unemployment taxes 1,600

Required: 1. Considering both employee and employer payroll taxes, use the preceding information to calculate the total labor cost for the company. 2. Prepare the journal entry to record the payroll for March, including employee deductions ( but excluding employer payroll taxes). 3. Prepare the journal entry to record the employer’s FICA taxes and unemployment taxes.

Explanation / Answer

Required: 1. Considering both employee and employer payroll taxes, use the preceding information to calculate the total labor cost for the company. Salaries $230,000 FICA Taxes $ 16,445 Unemployment Tax $1600 Total labor cost $248,045 2. Prepare the journal entry to record the payroll for March, including employee deductions (but excluding employer payroll taxes). Salaries Expense $230,000 FICA Taxes payable $16,445 Employees Income tax payable $50,200 Salary payable $163,355 3. Prepare the journal entry to record the employer’s FICA taxes and unemployment taxes. Payroll expenses $18,045 FICA Taxes Payable $16445 Unemployment Tax payable $1600

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.