Question

PLEASE COMPLETE ALL 3 TABLES FOR THE JOURNAL ENTRIES! MAKE SURE THERE IS THE CORRECT NUMBER OF ENTRIES AS PROVIDED IN EACH TABLE. NOT ONE MORE AND NOT ONE LESS OR ELSE I'LL GET WRONG ANSWERS. MAKE SURE THE DATES ARE CORRECT ALSO FOR EACH ENTRY!

The following information about the payroll for the week ended December 30 was obtained from the records of Pharrell Co.:

Salaries:
Sales salaries	$402,000
Warehouse salaries	210,000
Office salaries	165,000
	$777,000
Deductions:
Income tax withheld	$135,975
Social security tax withheld	46,620
Medicare tax withheld	11,655
Retirement savings	17,094
Group insurance	13,986
	$225,330
Tax rates assumed:
Social security	6%
Medicare	1.5%
State unemployment (employer only)	5.4%
Federal unemployment (employer only)	0.6%

	Required:
1.	Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): A. December 30, to record the payroll. B. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $40,000 is subject to unemployment compensation taxes.
2.	Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): A. On page 11 of the journal: December 30, to record the payroll. B. On page 12 of the journal: January 5, to record the employer's payroll taxes on the payroll to be paid on January 5. Because it is a new fiscal year, all salaries are subject to unemployment compensation taxes. CHART OF ACCOUNTS Pharrell Co. General Ledger ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Merchandise 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 Income Tax Payable 220 Group Insurance Payable 221 Bond Deductions Payable 222 Retirement Savings Payable 224 Federal Unemployment Tax Payable 225 State Unemployment Tax Payable 226 Vacation Pay Payable 227 Unfunded Pension Liability EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Warehouse Salaries Expense 522 Office 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 540 Miscellaneous Expense 710 Interest Expense Scroll down to access additional pages of the journal. 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): A. December 30, to record the payroll. B. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $40,000 is subject to unemployment compensation taxes. Question not attempted. PAGE 11 JOURNAL ACCOUNTING EQUATION Score: 0/171 DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Points: 0 / 30 Feedback Check My Work Gross pay represents total earnings before taxes and other deductions. Net pay, also known as take-home pay, represents how much the employees receive of gross earnings, after taxes and deductions. Employers are required to pay taxes on employee earnings. 2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): A. On page 11 of the journal: December 30, to record the payroll. Question not attempted. PAGE 11 JOURNAL ACCOUNTING EQUATION Score: 0/109 DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 7 8 9 Points: 0 / 19 B. On page 12 of the journal: January 5, to record the employer's payroll taxes on the payroll to be paid on January 5. Because it is a new fiscal year, all salaries are subject to unemployment compensation taxes. Question not attempted. PAGE 12 JOURNAL ACCOUNTING EQUATION Score: 0/61 DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5

Answer 1

1.

	PAGE 11
	JOURNAL					ACCOUNTING EQUATION
	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1	Dec. 30	Sales salaries expense		402000				-
2		Warehouse salaries expense		210000				-
3		Office salaries expense		165000				-
4		Employees income tax payable			135975		+
5		Social security tax payable			46620		+
6		Medicare tax payable			11655		+
7		Retirement savings payable			17094		+
8		Group insurance payable			13986		+
9		Salaries payable			551670		+
10	Dec. 30	Payroll tax expense		60675				-
11		Federal unemployment tax payable ($40000 x 0.6%)			240		+
12		State unemployment tax payable ($40000 x 5.4%)			2160		+
13		Social security tax payable			46620		+
14		Medicare tax payable			11655		+

2.

	PAGE 11
	JOURNAL					ACCOUNTING EQUATION
	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1	Dec. 30	Sales salaries expense		402000				-
2		Warehouse salaries expense		210000				-
3		Office salaries expense		165000				-
4		Employees income tax payable			135975		+
5		Social security tax payable			46620		+
6		Medicare tax payable			11655		+
7		Retirement savings payable			17094		+
8		Group insurance payable			13986		+
9		Salaries payable			551670		+

PAGE 12
JOURNAL					ACCOUNTING EQUATION
DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
Jan. 5	Payroll tax expense		104895				-
	Federal unemployment tax payable ($777000 x 0.6%)			4662		+
	State unemployment tax payable ($777000 x 5.4%)			41958		+
	Social security tax payable			46620		+
	Medicare tax payable			11655		+