Payroll for CBA Company is as folollows Gross salaries 100,000 FICA 6,200 Medicare 1,450 Federal Taxes...

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

Expert Solution

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)

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