In: Accounting
The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co:
Salaries: | Deductions: | ||
Sales salaries | $330.000 | Income tax withheld | $117.200 |
Warehouse salaries | 184,000 | U.S.savings bonds | 14.520 |
Office sales | 146,000 | Group insurance | 11,880 |
$660,000 |
Tax rates assumed:
Social security | 6% | State unemployment(employer only) 5.4% | |
Medicare | 1.5% | Federal unemployment(employer only) 0.8% |
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. or the total payroll for the last week of the year, $33,000 is subject to unemployment compensation taxes
ANSWER
Accounts Title | Dr | Cr | |
1) a |
|||
Sales Salaries Expenses | $330,000 | ||
Warehouses Salaries Expenses | $184,000 | ||
Office salaries Expenses | 146,000 | ||
Income Tax withholding payable | $117,200 | ||
Social security Taxes payable (660,000*6%) | 39,600 | ||
Medicare taxes Payable | 9,900 | ||
Bond Deduction Payable | 14,520 | ||
Group Insurance payable | 11,880 | ||
salaries Payable | $466,900 | ||
(being payroll recorded) | |||
1) b |
|||
Payroll tax expenses | 51,546 | ||
Social security Taxes payable (660,000*6%) | 39,600 | ||
Medicare taxes Payable | 9,900 | ||
State unemployment taxes payable (33,000*5.4%) | 1,782 | ||
Federal unemployment taxes payable (33,000*.8%) | 264 |