The payroll register for Proctor Company for the week ended February 14 indicate

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.

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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

JOURNAL

S.NO.

ACCOUNTS / DESCRIPTION

DEBIT

CREDIT

1

Salaries Expense

$        1,500,000

Social security tax Payable

$              90,000

Medicare tax Payable

$              22,500

Federal income tax payable

$            300,000

State unemployment taxes Payable   (270000*5.4%)

$              14,580

Federal unemployment taxes Payable (270000*0.8%)

$                2,160

Salary Payable

$        1,070,760

(Being salary recorded)

2

State unemployment taxes expense   (270000*5.4%)

$              14,580

Federal unemployment taxes expense (270000*0.8%)

$                2,160

State unemployment taxes Payable   (270000*5.4%)

$              14,580

Federal unemployment taxes Payable (270000*0.8%)

$                2,160

(Being expenses recorded)

JOURNAL

S.NO.

ACCOUNTS / DESCRIPTION

DEBIT

CREDIT

1

Salaries Expense

$        1,500,000

Social security tax Payable

$              90,000

Medicare tax Payable

$              22,500

Federal income tax payable

$            300,000

State unemployment taxes Payable   (270000*5.4%)

$              14,580

Federal unemployment taxes Payable (270000*0.8%)

$                2,160

Salary Payable

$        1,070,760

(Being salary recorded)

2

State unemployment taxes expense   (270000*5.4%)

$              14,580

Federal unemployment taxes expense (270000*0.8%)

$                2,160

State unemployment taxes Payable   (270000*5.4%)

$              14,580

Federal unemployment taxes Payable (270000*0.8%)

$                2,160

(Being expenses recorded)

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