..ooo1nlandC LTE 8:57 PM 89961 + edu gen wileyplus.com ileyPLUS Problem 11-5A 1
ID: 2581661 • Letter: #
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..ooo1nlandC LTE 8:57 PM 89961 + edu gen wileyplus.com ileyPLUS Problem 11-5A 1 hem 1 For the year ended December 31, 2017, Denkinger Electrical Repair Company reports the following summary payroll data Gross eanings: Electricians wages Total FICA taxes Federal income taxes withheld State income taxes withheld (3%) United Fund contributions payable Health insurance premiums Denkinger Company's payroll taxes are Social Security tax 6.2%, Medicare tax 1.45%, state unemployment 2.5% (due to a stable employment record), and 0.8% federal unemployment. Gross earnings subject to Social Security taxes of 6.2% total $487,500, and gross earnings subject to unemployment taxes total $124,000. ) Prepare a summary journal entry at December 31 for the full year's payroll ) Journalize the adjusting entry at December 31 to record employer's payr taxes. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (c) The W-2 Wage and Tax Statement requires the following dollar data. Complete the required data for the following employees. (Round answers to 0 decimal places, e.g. 5,275Explanation / Answer
No.
Account titles and explanation
debit
credit
a)
Salaries and Wages Expense
576500
FICA Taxes Payable
38584
Federal Income Taxes Payable
166500
State Income Taxes Payable
17295
United Fund Contributions Payable
27813
Health Insurance Payable
18000
Salaries and Wages Payable
308308
b)
Payroll Tax Expense
42676
FICA Taxes Payable
38584
State Unemployment Taxes Payable
3100
Federal Unemployment Taxes Payable
992
=124000*2.5% = 3100
=124000*0.8% = 992
Employee
Wages, Tips, Other Compensation
Federal Income Tax Withheld
State Income Tax Withheld
FICA Wages
FICA Tax Withheld
Maria 60000 29400 1800 60000 4590
Jennifer 27500 10725 825 27500 2103.75
60000*3% = 1800
27500*3% = 825
60000*(6.2%+1.45%) = 4590
27500*(6.2%+1.45%) = 2103.75
No.
Account titles and explanation
debit
credit
a)
Salaries and Wages Expense
576500
FICA Taxes Payable
38584
Federal Income Taxes Payable
166500
State Income Taxes Payable
17295
United Fund Contributions Payable
27813
Health Insurance Payable
18000
Salaries and Wages Payable
308308
b)
Payroll Tax Expense
42676
FICA Taxes Payable
38584
State Unemployment Taxes Payable
3100
Federal Unemployment Taxes Payable
992
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