In: Accounting
The following information about the payroll for the week ended December 30 was obtained from the records of Pharrell Co.:
Salaries: | |
Sales salaries | $402,000 |
Warehouse salaries | 210,000 |
Office salaries | 165,000 |
$777,000 | |
Deductions: | |
Income tax withheld | $135,975 |
Social security tax withheld | 46,620 |
Medicare tax withheld | 11,655 |
Retirement savings | 17,094 |
Group insurance | 13,986 |
$225,330 | |
Tax rates assumed: | |
Social security | 6% |
Medicare | 1.5% |
State unemployment (employer only) | 5.4% |
Federal unemployment (employer only) | 0.6% |
Required: | |||||
1. | Assuming that the payroll for the last week of the year is to
be paid on December 31, journalize the following entries (refer to
the Chart of Accounts for exact wording of account titles):
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2. | Assuming that the payroll for the last week of the year is to
be paid on January 5 of the following fiscal year, journalize the
following entries (refer to the Chart of Accounts for exact wording
of account titles):
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General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Journal
Scroll down to access additional pages of the journal.
1. | Assuming that the payroll for the last week of the year is to
be paid on December 31, journalize the following entries (refer to
the Chart of Accounts for exact wording of account titles):
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PAGE 11
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
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1 |
2. | Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): |
A. On page 11 of the journal: December 30, to record the payroll. |
PAGE 11
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
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1 |
B. On page 12 of the journal: January 5, to record the employer's payroll taxes on the payroll to be paid on January 5. Because it is a new fiscal year, all salaries are subject to unemployment compensation taxes. |
PAGE 12
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
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1 |
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