Question

Joan, a single mother of 1 child, has a 2017 salary of $128,000. Gross Salary 128,000.00 Social Security ??? Medicare ??? Federal Income Tax 7,800.00 State Income Tax 5,400.00 401K 3,500.00 Union Dues 600.00 Charity 2,500.00 Note: 2017 Social Security Rate: 6.20% 2017 Medicare Rate: 1.45% 2017 Social Security Threshold: $127,200 Please prepare the Journal Entry to record Joan's payroll entries in the company's books.

Answer 1

                                                      In the books of Employer

                                                            Journal Entries

Date	Particulars	Debit	Credit
2017
Dec 31	Gross Wages A/C                                                             DR.	128,000
	To Social security taxes payable A/C                       ($127,200 * 6.2%)		7,886.4
	To Medicare taxes payable A/C                  ($128,000 * 1.45%)		1,856
	To Federal Income Tax payable A/C		7,800
	To State Income Tax payable A/C		5,400
	To 401K Payable A/C		3,500
	To Union Dues Payable A/C		600
	To Charity A/C		2,500
	To Payroll Payable (Net Wages) A/C (B/F)		98,457.6
	(Being wages to Joan and related taxes payable )