Spirit Corporation reported the following payroll-related costs for the month of

Question

Spirit Corporation reported the following payroll-related costs for the month of February: Gross pay (wages expense) $ 262,000 Social Security and Medicare taxes 20,043 Federal and state unemployment taxes 15,500 Workers' compensation insurance 8,000 Group health and life insurance benefits 9,000 Employee pension plan benefits 24,100 Total payroll costs for February $ 338,643 Spirit’s insurance premiums for workers’ compensation and group health and life insurance were paid for in a prior period and recorded initially as prepaid insurance expense. Withholdings from employee wages in February were as follows: State income tax withholdings $ 5,875 Federal income tax withholdings 56,000 Social Security and Medicare tax withholdings 20,043 a-c. Record Spirit’s payroll entries for the month of February. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Explanation / Answer

In the books of Spirit Corporation $ $ Workmen's Compensation Insurance Paid A/c DR 8000 Health and Life Insurance Premium Paid A/c DR 9000 To Prepaid Insurance A/c 17000 Wages Expense A/c DR 262000 Social Security and Medical Taxes A/c DR 20043 Federal and State Unemployment Taxes A/c DR 15500 To State Income Tax A/c 587 To Federal Income Tax A/c 56000 To Social Security and Medicare Tax A/c 20043 To Wages Payable A/c 220913

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

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