During the month of March, Odessy Company\'s employees earned wages of $127.000

Question

During the month of March, Odessy Company's employees earned wages of $127.000 Withholdings related to these wages were FICA-Social Security, FICA-Medicare, federal income tax withheld of $22,860, state income tax withheld of $5,080, charitable contributions of $3,500 and union dues of $4,400. The company incurred federal unemployment tax of $700 and state unemployment tax of $8,400. Prepare the journal entries to record: a. b. c. the accrual of payroll expenses, the payment of the net wages, and the accrual of the payroll tax expense. A1 Exam 3A S18, Page 7

Explanation / Answer

1 Salaries expense 127000               FICA social security taxes payable 7874 (127000*6.2%)                FICA Medicare taxes payable 1841.5 127000*1.45%               Federal income tax payable 22860               State income tax payable 5080                Contribution payable 3500                Union dues payable 4400               Salaries payable 81444.5 2 Salalries payable 81444.5               Cash 81444.5 3 Payroll expense 18815.5               FICA social security taxes payable 7874                FICA Medicare taxes payable 1841.5                Federal unemployement tax payable 700                State unemployement tax payable 8400

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