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1. Considering both employee and employer payroll taxes, use the preceding infor

ID: 2568940 • Letter: 1

Question

1. Considering both employee and employer payroll taxes, use the preceding information to calculate the total labor cost for the company.

2 &3. Prepare the journal entry to record the payroll for March, including employee deductions (but excluding employer payroll taxes), employer’s FICA taxes and unemployment taxes. Employees were paid in March but amounts withheld were not yet remitted. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

5. value: 2.00 points E10-3 Recording Payroll Costs [LO 10-2] McLoyd Company completed the salary and wage payroll for March. The payroll provided the following details: Salaries and wages earned $500,000 46,250 35,750 3,475 FICA taxes withheld Unemployment taxes Required: 1. Considering both employee and employer payroll taxes, use the preceding information to calculate the total labor cost for the company. Total Labor Cost

Explanation / Answer

1 Total labor cost = 500000+35750+3475= 539225 2 Mar-31 Salaries and wages expense 500000         Withheld income taxes payable 46250          FICA payable 35750           Cash 418000 Mar-31 Payroll tax expense 39225           Unemployment taxes payable 3475            FICA payable 35750