Widmer Company had gross wages of $237,000 during the week ended June 17. The am
ID: 2399197 • Letter: W
Question
Widmer Company had gross wages of $237,000 during the week ended June 17. The amount of wages subject to social security tax was $213,300, while the amount of wages subject to federal and state unemployment taxes was $30,000. Tax rates are as follows:
The total amount withheld from employee wages for federal taxes was $47,400.
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 17.
Social security 6.0% Medicare 1.5% State unemployment 5.3% Federal unemployment 0.8%Explanation / Answer
Journal Entry Date Particulars Dr. Amt. Cr. Amt. a. Wages Expense 237,000.00 Federal Taxes Payable 47,400.00 Social Security Tax Payable 12,798.00 $213,300 X 6% Medicare Tax Payable 3,199.50 $213,300 X 1.5% Wages Payable 173,602.50 (To record the payroll expenses) b. Payroll Tax Payable 17,827.50 Social Security Tax Payable 12,798.00 $213,300 X 6% Medicare Tax Payable 3,199.50 $213,300 X 1.50% State Unemployment Tax Payable 1,590.00 $30,000 X 5.30% Federal Unemployment Tax Payable 240.00 $30,000 X 0.80% (To record the payroll tax expense)
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