How to journalize this entries? 31. Received the following data on the monthly p
ID: 2465280 • Letter: H
Question
How to journalize this entries?
31. Received the following data on the monthly payroll from the payroll clerk: Direct labor (already recorded) .. $46,034.00
New payroll data (to be recorded):
Factory:
Indirect --------------------------------------------------------------------------$22,440.00
Superintendents salary ----------------------------------------------------$ 6,200.00
Nonfactory:
Sales Salaries --------------------------------------------------------------- $ 23,950.00
Officers Salaries ------------------------------------------------------------- $14,280.00
Office Salaries ----------------------------------------------------------------- $12,620.25
Record the monthly payroll in the general journal. Remember that direct labor payroll already has been recorded as it was incurred in January. Salaries for indirect labor are recorded only at the end of the month. Debit Factory Overhead for Indirect Labor and Superintendents salaries, debit other expense accounts for the appropriate amounts, credit FICA Tax Payable for 7.5% of gross pay, credit Employees Income Tax Payable for 15% of gross pay, and credit Salaries Payable for the net pay.
31. Record the employer payroll taxes for January. All payroll taxes relating to factory personnel are debited to Factory Overhead; all payroll taxes related to nonfactory personnel are debited to Payroll Taxes ExpenseGeneral. Use a simplified FICA tax rate of 7.5% of gross pay, a state unemployment tax rate of 5.4%, and a federal unemployment tax rate of 0.8%. Since this is the first month in the current year, no employee has reached the ceilings on the payroll taxes. Use the form on page 46 (optional) to determine the amounts for the journal entry.
Explanation / Answer
Payroll Entry Payroll Tax Expenses Account Title Dr $ Cr $ FICA IT SUTA FUTA Factory Overhead Expense 28,640.0 Factory Overhead Expense 2,148.0 4,296.0 1,546.6 229.1 Sales Salary Expense 23,950.0 Sales Salary Expense 1,796.3 3,592.5 1,293.3 191.6 Administrative Salary Expense 26,900.25 Administrative Salary Expense 2,017.5 4,035.0 1,452.6 215.2 FICA Tax Payable 5,961.80 Total 5,961.8 11,923.5 4,292.5 635.9 Employees Income Tax Payable 11,923.50 Salaries Payable 61,604.95 Payroll Tax Expenses Account Title Dr $ Cr $ Factory Overhead Expense 3,923.7 Payrol Tax Expenses General 6,966.5 FICA Tax Payable 5,961.8 State Unemployment Tax payable 4,292.5 Federal Unemployment Tax payable 635.9
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