The following information about the payroll for the week ended December 30 was o
ID: 2493356 • Letter: T
Question
The following information about the payroll for the week ended December 30 was obtained from the records of Qualitech Co.:
Salaries: Sales salaries $350,000 Warehouse salaries 180,000 Office salaries 145,000 $675,000 Deductions: Income tax withheld $118,800 Social security tax withheld 40,500 Medicare tax withheld 10,125 U.S. savings bonds 14,850 Group insurance 12,150 $196,425 Tax rates assumed: Social security 6% Medicare 1.5% State unemployment (employer only) 5.4% Federal unemployment (employer only) 0.8%Explanation / Answer
Qualitech Co 1a Journal Entries Particular Amount Debit Amount Credit 30-Dec Sales Salaries Expense $ 350,000.00 Wage Salaries Expense $ 182,000.00 Office Salaries Expense $ 136,000.00 Employee Income Tax Payable $ 117,000.00 Social Security Tax Payable $ 40,080.00 Medicare Tax Payable $ 10,020.00 Bond Deduction Payable $ 14,696.00 Group Insurance Payable $ 12,024.00 Salaries Payable $ 474,180.00 1b 5-Dec Payroll Expense Social security Tax Payable $ 40,080.00 Medicare Tax Payable $ 10,020.00 State Unemployment Tax Payable $ 1,890.00 Fderal Unemployment Tax Payable $ 280.00 2a 31-Dec Sales Salaries Expense $ 350,000.00 Wage Salaries Expense $ 182,000.00 Office Salaries Expense $ 136,000.00 Employee Income Tax Payable $ 117,000.00 Social Security Tax Payable $ 40,080.00 Medicare Tax Payable $ 10,020.00 Bond Deduction Payable $ 14,696.00 Group Insurance Payable $ 12,024.00 Salaries Payable $ 474,180.00 2b 5-Jan Payroll Expense $ 91,950.00 Social security Tax Payable $ 40,080.00 Medicare Tax Payable $ 10,020.00 State Unemployment Tax Payable $ 36,450.00 Fderal Unemployment Tax Payable $ 5,400.00
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