on January 8, the end of the first weekly pay period of the year, Royal Companys
ID: 2385086 • Letter: O
Question
on January 8, the end of the first weekly pay period of the year, Royal Companys payroll register showed that its emplolyees earned 11,380 of office salaries and 32,920 of sales salaries. Withholdings from the employees salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%,$6,340 of federal income taxes, 670 of medical insurance deductions, and 420 of union dues. No employee earned more than 7,000 in this first period.1. Calculate FICA Social Security taxes payable and FICA Medicare taxes payable. Prepare the journal entry to record Royal Companys January 8 (employee) payroll expenses and liabilties.
I am stuck with the calculations. I have tried everything possible and I am still getting the wrong answer when it is checked. I think I am missing something.
Explanation / Answer
Total salaries + 11,380 + 32,920 = 44,300 FICA Social Security = 6.2% * 44,300 = 2746.60 FICA medicare = 1.45% * 44,300 = 642.35 Debit: Salaries expense 44,300 Credits: FICA-Social Security Taxes Payable 2746.60 FICA-Medicare TAxes Payable 642.35 Employee Federal Income Taxes Payable 6,340 Employee Medical Insurance Payable 670 Employee Union Dues Payable 420 Accrued Payroll Payable 33,481.05 (plug in number - take salaries expense and subtract all the other deductions)
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