Question

Payroll Entries 

Widmer Company had gross wages of $320,000 during the week ended June 17. The amount of wages subject to social security tax was $320,000, while the amount of wages subject to federal and state unemployment taxes was $48,000. Tax rates are as follows:

 Social security 6.0% 

 Medicare 1.5% 5.4% 

 State unemployment Federal unemployment 0.8% 

The total amount withheld from employee wages for federal taxes was $64,000. 

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 12.

Answer 1

Date	Accounts	Debit	Credit
June 17	Wages Expense	320,000
	Social security tax payable [320,000*6%]		19200
	Medicare tax payable [320,000*1.5%]		4800
	Employees Federal income tax payable		64,000
	Wages Payable [bal. fig.]		232,000
	[To record payroll for the week]
Date	Accounts	Debit	Credit
June 17	Payroll Tax Expense	26,976
	Social security tax payable [320,000*6%]		19200
	Medicare tax payable [320,000*1.5%]		4800
	State unemployment taxes payable [48,000*5.4%]		2592
	Federal Unemployment taxes payable [48,000*0.8%]		384
	[To record payroll taxes for the week]