In: Accounting
Payroll for CBA Company is as folollows
Gross salaries 100,000
FICA 6,200
Medicare 1,450
Federal Taxes 20,000
MA taxes 5,000
Federal unemployment 1%
MA unemployment 7%
Prepare journal entries to record payroll and payroll taxes
Closing entries; | ||
Account's tittle | Debit $ | Credit $ |
Salaries and wages ( gross salary ) | 100,000 | |
FICA payable | 6,200 | |
Medicare payable | 1,450 | |
Federal taxes payable | 20,000 | |
MA taxes | 5,000 | |
Federal unemployment tax payable ( $ 100,000 x 1%) | 1,000 | |
MA unemployment tax payable ($ 100,000 x 7% ) | 7,000 | |
Salaries and wages payable ( net salary ) | 59,350 | |
( salaries and wages become due ) | ||
Salaries and wages payable | 59,350 | |
Cash | 59,350 | |
( Payment of salary to the employees ) | ||
FICA payable | 6,200 | |
Medicare payable | 1,450 | |
Federal taxes payable | 20,000 | |
MA taxes | 5,000 | |
Federal unemployment tax payable ( $ 100,000 x 1%) | 1,000 | |
MA unemployment tax payable ($ 100,000 x 7% ) | 7,000 | |
Cash | 40,650 | |
( payroll taxes remitted to the government account) |