The following information about the payroll for the week ended December 30 was o
ID: 2497858 • 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%
Required:
2.
Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):
A.
On page 11 of the journal: December 30, 2015, to record the payroll. Include the year when enter the date in the journal.
B.
On page 12 of the journal: January 5, 2016, to record the employer's payroll taxes on the payroll to be paid on January 5, 2016. Because it is a new fiscal year, all $675,000 in salaries is subject to unemployment compensation taxes. Include the year when enter the date in the journal.
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
The following information about the payroll for the week ended December 30 was o
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