The following information about the payroll for the week ended December 30 was o
ID: 2488182 • Letter: T
Question
The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.:
On page 12 of the journal: January 4, 2016, to record the employer’s payroll taxes on the payroll to be paid on January 4. Because it is a new fiscal year, all $1,185,000 in salaries is subject to unemployment compensation taxes. Include the year when entering the date in the journal.
Salaries: Sales salaries $625,000 Warehouse salaries 240,000 Office salaries 320,000 $1,185,000 Deductions: Income tax withheld $232,260 Social security tax withheld 71,100 Medicare tax withheld 17,775 U.S. savings bonds 35,500 Group insurance 53,325 $409,960 Tax rates assumed: Social security 6% Medicare 1.5% State unemployment (employer only) 5.4% Federal unemployment (employer only) 0.8%Explanation / Answer
1)Assuming that the payroll for the last week of the year is to be paid on December 31, 2015, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):
2)
Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year, journalize the following entries
No Date Account Title & Explaination Debit Credit A December 30, 2015 Sales Salaries Expense 625000 Warehouse Salaries Expense 240000 Office Salaries Expense 320000 Employees Income Tax Payable 232260 Social Security Tax Payable 71100 Medicare Tax Payable 17775 Group Insurance Payable 35500 U.S. Savings Bond Deductions Payable 53325 Salaries Payable 775040 B December 30, 2015 Payroll Tax Expense 90735 Social Security Tax Payable 71100 Medicare Tax Payable 17775 Federal Unemployment Tax Payable 1620 State Unemployment Tax Payable 240Related Questions
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