Question

Payroll Entries 

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

Salaries $615,000 

Federal income tax withheld 165,000 

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 $45,000 of salaries. 

For a compound transaction, if an amount box does not require an entry, leave it blank. 

a. Journalize the entry to record the payroll for the week of May 18. May 18 

b. Journalize the entry to record the payroll tax expense incurred for the week of May 18. May 18

Answer 1

Part A

Date	Account titles and explanation	Debit	Credit
May 18	Salaries expense	615000
	Social security tax payable (615000*6%)		36900
	Medicare tax payable (615000*1.5%)		9225
	Employment federal income tax payable		165000
	Salaries payable		403875

Part B

Date	Account titles and explanation	Debit	Credit
May 18	Payroll tax expenses	48915
	Social security tax payable (615000*6%)		36900
	Medicare tax payable (615000*1.5%)		9225
	State unemployment taxes payable (45000*5.4%)		2430
	Federal unemployment taxes payable (45000*0.8%)		360