Question

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

Sales salaries		$125,000
Federal income tax withheld		32,300
Office salaries		35,000
Medical insurance withheld		7,370
Social security tax withheld		10,200
Medicare tax withheld		2,550

a. Journalize the entry to record the payroll. If an amount box does not require an entry, leave it blank or enter 0.

b. Journalize the entry to record 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 $25,000 of salaries are subject to unemployment taxes. If an amount box does not require an entry, leave it blank or enter 0.

Answer 1

Answer
a
Account Title	Debit	Credit
Sales Salaries Expense	$      125,000
Office Salaries Expense	$        35,000
Social Security Tax Payable		$        10,200
Medicare Tax Payable		$          2,550
Employees Federal Income Tax Payable		$        32,300
Medical Insurance Payable		$          7,370
Salaries Payable		$      107,580
b
Payroll Taxes Expense	$        13,725
Social Security Tax Payable		$        10,200
Medicare Tax Payable		$          2,550
State Unemployment Tax Payable		$             775	25000*3.1%
Federal Unemployment Tax Payable		$             200	25000*0.8%