The payroll register for Proctor Company for the week ended February 14 indicate
ID: 2497218 • Letter: T
Question
The payroll register for Proctor Company for the week ended February 14 indicated the following: Salaries $1,500,000 Social security tax withheld 90,000 Medicare tax withheld 22,500 Federal income tax withheld 300,000 In addition, state and federal unemployment taxes were calculated at the rate of 5.4% and 0.8%, respectively, on $270,000 of salaries. Required: A. Journalize the entry to record the payroll for the week of February 14.* B. Journalize the entry to record the payroll tax expense incurred for the week of February 14.* * Refer to the Chart of Accounts for exact wording of account titles.
Explanation / Answer
In addition to salaries and wages, the employer will incur some or all of the following payroll-related expenses:
(a)
Date
Payroll Entry
Feb-14
Salaries
$1,500,000
Cash
$1,070,760
Social Security withheld Tax
$90,000
Medical Tax
$22,500
Federal Income Tax
$3,00,000
State unemployment Tax
$14,580
Federal unemployment Tax
$2,160
$1,500,000
$1,500,000
(b)
Date
Employer Payroll Tax Entry
Feb-14
Payroll Tax Expenses
$4,29,240
Social Security withheld Tax
$90,000
Medical Tax
$22,500
Federal Income Tax
$3,00,000
State unemployment Tax
$14,580
Federal unemployment Tax
$2,160
$4,29,240
$4,29,240
(a)
Date
Payroll Entry
Feb-14
Salaries
$1,500,000
Cash
$1,070,760
Social Security withheld Tax
$90,000
Medical Tax
$22,500
Federal Income Tax
$3,00,000
State unemployment Tax
$14,580
Federal unemployment Tax
$2,160
$1,500,000
$1,500,000
(b)
Date
Employer Payroll Tax Entry
Feb-14
Payroll Tax Expenses
$4,29,240
Social Security withheld Tax
$90,000
Medical Tax
$22,500
Federal Income Tax
$3,00,000
State unemployment Tax
$14,580
Federal unemployment Tax
$2,160
$4,29,240
$4,29,240
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