Deacon Company provides you with following information related to payroll transa
ID: 2590817 • Letter: D
Question
Deacon Company provides you with following information related to payroll transactions for the month of May. Prepare journal entries to record the transactions for May ffice alaries Sales Salaries Taxes Social Security Federal Income Medicare Taxes Tax $928 $38.000 $26.000 $3.968 a. Recorded the May payroll using the payroll register information given above. b. Recorded the employer's payroll taxes resulting from the May payroll. The company had a merit rating that reduces its state unemployment tax rate to 3.5% of the first $7,000 paid each employee. Only $42.000 of the current months salaries are subject to unemployment taxes. The federal rate is 0.6%·c. Issued a check to Reliant Bank in payment of the May FICA and employee taxes. d. Issued a check to the state for the payment of the SUTA taxes for the month of May e. Issued a check to Reliant Bank in payment of the employer's quarterly FUTA taxes for the first quarter in the amount of $1,020.Explanation / Answer
No. Account Titles and Explanation Debit Credit a. Office salaries expense 38000 Sales salaries expense 26000 Social security taxes payable 3968 Medicare taxes payable 928 Federal income tax withheld payable 5600 Salaries payable 53504 (To record May payroll) b. Payroll taxes expense Social security taxes payable 3968 Medicare taxes payable 928 SUTA taxes payable ($42000 x 3.5%) 1470 FUTA taxes payable ($42000 x 0.6%) 252 (To record employer's payroll taxes expense for May) c. Social security taxes payable 7936 Medicare taxes payable 1856 Federal income tax withheld payable 5600 Cash 15392 (To record payment of FICA and employee taxes for May) d. SUTA taxes payable 1470 Cash 1470 (To record payment of SUTA taxes for May) e. FUTA taxes payable 1020 Cash 1020 (To record payment of FUTA taxes for first quarter)
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