Question

The payroll register for D. Salah Company for the week ended May 18 indicated the following:

Salaries	$544,000
Federal income tax withheld	108,800

The salaries were all subject to the 6.0% social security tax and the 1.5% Medicare tax. In addition, state and federal unemployment taxes were calculated at the rate of 5.4% and 0.8%, respectively, on $10,336 of salaries.

	Required:
	a. Journalize the entry to record the payroll for the week of May 18.*
	b. Journalize the entry to record the payroll tax expense incurred for the week of May 18.* * Refer to the Chart of Accounts for exact wording of account titles. Round your answers to the nearest whole dollar.

Chart of Accounts

CHART OF ACCOUNTS
D. Salah Company
General Ledger
ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment 126 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 213 Interest Payable 214 Notes Payable 215 Salaries Payable 216 Social Security Tax Payable 217 Medicare Tax Payable 218 Employees Federal Income Tax Payable 219 Employees State Income Tax Payable 221 Retirement Savings Deductions Payable 224 Federal Unemployment Tax Payable 225 State Unemployment Tax Payable 226 Vacation Pay Payable 227 Unfunded Pension Liability 228 Product Warranty Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary	REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Salaries Expense 524 Depreciation Expense-Building 525 Delivery Expense 526 Repairs Expense 529 Selling Expenses 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Supplies Expense 535 Payroll Tax Expense 536 Vacation Pay Expense 537 Pension Expense 538 Cash Short and Over 539 Product Warranty Expense 540 Miscellaneous Expense 710 Interest Expense

Journal

Shaded cells have feedback.

	a. Journalize the entry to record the payroll for the week of May 18.*
	b. Journalize the entry to record the payroll tax expense incurred for the week of May 18.* * Refer to the Chart of Accounts for exact wording of account titles. Round your answers to the nearest whole dollar.

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JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
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Answer 1

Date	Description	Post ref	Debit	Credit	Assets	Liabilities	Equity
May-18	Salaries Expense		544000				↓
	Employees Federal Income Tax Payable			108800		↑
	Social Security Tax Payable			32400		↑
	Medicare Tax Payable			8100		↑
	Salaries Payable			394700		↑
May-18	Payroll Tax Expense		41141				↓
	Social Security Tax Payable			32400		↑
	Medicare Tax Payable			8100		↑
	State Unemployment Tax Payable			558		↑
	Federal Unemployment Tax Payable			83		↑
	Workings:
	Social Security Tax Payable=544000*6%=32400
	Medicare Tax Payable=544000*1.5%=8100
	State Unemployment Tax Payable=10336*5.4%=558
	Federal Unemployment Tax Payable=10336*0.8%=83