Question

Payroll Entries Widmer Company had gross wages of $314,000 during the week ended June 17. The amount of wages subject to social security tax was $282,600, while the amount of wages subject to federal and state unemployment taxes was $39,000. 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 $62,800. 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. b. Journalize the entry to record the payroll tax expense incurred for the week of June 17.

Answer 1

1	Salaries and wages expense	314000
	Social security taxes payable		16956	(282600*6%)
	Medicare taxes payable		4710	(314000*1.5%)
	Federal income tax payable		62800
	Salaries and wages payable		229534
2	Payroll tax expenses	24045
	FICA taxes payable		16956
	Medicare taxes payable		4710
	State unemployement taxes payable		2067	(39000*5.3%)
	Federal unemployement taxes payable		312	(39000*.8%)