Question

The summary of the payroll for the monthly pay period ending July 15 indicated the following:

Sales salaries	$135,000
Federal income tax withheld	32,300
Office salaries	30,000
Medical insurance withheld	7,370
Social security tax withheld	10,200
Medicare tax withheld	2,550

Journalize the entries to record (a) the payroll and (b) the employer's payroll tax expense for the month. The state unemployment tax rate is 3.1%, and the federal unemployment tax rate is 0.8%. Only $30,000 of salaries are subject to unemployment taxes.

Answer 1

a
Sales Salaries Expense	135000
Office Salaries Expense	30000
Social Security Tax Payable		10200
Medicare Tax Payable		2550
Employees Federal Income Tax Payable		32300
Medical Insurance Payable		7370
Salaries Payable		112580
b
Payroll Taxes Expense	13920
Social Security Tax Payable		10200
Medicare Tax Payable		2550
State Unemployment Tax Payable		930	=30000*3.1%
Federal Unemployment Tax Payable		240	=30000*0.8%