Widmer Company had gross wages of $240,000 during the week ended June 17. The am

Question

Widmer Company had gross wages of $240,000 during the week ended June 17. The amount of wages subject to social security tax was $240,000, while the amount of wages subject to federal and state unemployment taxes was $35,000. Tax rates are as follows: Social security 6.0% Medicare 1.5% State unemployment 5.4% Federal unemployment 0.8% The total amount withheld from employee wages for federal taxes was $48,000. Required: A. Journalize the entry to record the payroll for the week of June 17.* Refer to the Chart of Accounts for exact wording of account titles. B. Journalize the entry to record the payroll tax expense incurred for the week of June 17.* * Refer to the Chart of Accounts for exact wording of account titles.

Explanation / Answer

Widmer Company   Payroll Journal Entries Account Title Dr $ Cr $ Wages Expense          240,000 Federal Income Tax Payable                48,000 FICA Tax Payable              14,400 Medicare Tax Payable                3,600 Wages Payable           174,000 Payroll Expenses Account Title Dr $ Cr $ Payroll Expenses            20,170 FICA Tax Payable              14,400 Medicare Tax Payable                3,600 FUTA Payable                    280 SUTA Payable                1,890

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