Question

1. Payroll Entries

   Widmer Company had The total earnings of an employee for a payroll period.gross wages of $269,000 during the week ended June 17. The amount of wages subject to social security tax was $242,100, while the amount of wages subject to federal and state unemployment taxes was $34,000. Tax rates are as follows:

   Social security	6.0%
   Medicare	1.5%
   State unemployment	5.3%
   Federal unemployment	0.8%

   The total amount withheld from employee wages for federal taxes was $53,800.

   If an amount box does not require an entry, leave it blank.

   a. Journalize the entry to record the payroll for the week of June 17.

   	Wages Expense Cash Medicare Tax Payable Social Security Tax Payable State Unemployment Tax Payable Wages Expense	269,000
   	Social Security Tax Payable Cash Employees Federal Income Tax Expense Social Security Tax Expense Social Security Tax Payable Wage Expense		14,526
   	Medicare Tax Payable Federal Unemployment Tax Payable Medicare Tax Expense Medicare Tax Payable Payroll Taxes Expense Wage Expense
   	Employees Federal Income Tax Payable Cash Employees Federal Income Tax Payable Payroll Taxes Expense State Unemployment Tax Expense State Unemployment Tax Payable		53,800
   	Wages Payable Cash Federal Unemployment Tax Expense Federal Unemployment Tax Payable Payroll Taxes Expense Wages Payable

   Feedback

   Gross pay is the amount that employees have earned before taxes and deductions. A portion of employees' earnings are owed for such items as state and federal taxes. Net pay is also known as take home pay.

   Learning Objective 2.

   b. Journalize the entry to record the payroll tax expense incurred for the week of June 17.

   	Payroll Tax Expense Cash Medicare Tax Payable Payroll Tax Expense Social Security Tax Payable State Unemployment Tax Payable
   	Social Security Tax Payable Cash Payroll Tax Expense Salaries Expense Social Security Tax Expense Social Security Tax Payable		14,526
   	Medicare Tax Payable Cash Medicare Tax Payable Payroll Tax Expense Salaries Expense Salaries Payable
   	State Unemployment Tax Payable Cash Payroll Tax Expense Salaries Payable State Unemployment Tax Expense State Unemployment Tax Payable	180,200
   	Federal Unemployment Tax Payable Cash Federal Unemployment Tax Expense Federal Unemployment Tax Payable Payroll Tax Expense Salaries Payable

   Feedback

   Remember that there is typically a maximum amount of earnings subject to state and federal unemployment taxes. Recall that the amounts calculated are amounts that are owed.

   Learning Objective 2.

   Feedback

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Answer 1

Date	Account Titles and Explanation	Debit (in $)	Credit (in $)
Jun-17	Wages Expense	$ 269,000
	Social Security Tax Payable             ( $ 242,100 x 6% )		$ 14,526
	Medicare Tax Payable             ( $ 269,000 x 1.5% )		$ 4,035
	Employees Federal Income Tax Payable		$ 53,800
	Wages Payable   - Bal. Fig.		$ 196,639
	(To record the payroll for the week)
Jun-17	Payroll Tax Expense - Bal. Fig.	$ 20,635
	Social Security Tax Payable             ( $ 242,100 x 6% )		$ 14,526
	Medicare Tax Payable             ( $ 269,000 x 1.5% )		$ 4,035
	State Unemployment Tax Payable             ( $ 34,000 x 5.3% )		$ 1,802
	Federal Unemployment Tax Payable             ( $ 34,000 x 0.8% )		$ 272
	(To record the payroll tax expense for the week)