According to a summary of the payroll of Scofield Industries Co., $600,000 was s

Question

According to a summary of the payroll of Scofield Industries Co., $600,000 was subject to the 6.0% social security tax and $740,000 was subject to the 1.5% Medicare tax. Also, $20,000 was subject to state and federal unemployment taxes.

a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 4.2%; federal unemployment, 0.8%.
$
b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank.


Account Debit Credit
Payroll Tax Expense
Social Security Tax Payable
Medicare Tax Payable
State Unemployment Tax Payable
Federal Unemployment Tax Payable

Explanation / Answer

Payroll Tax Expense 36,000 SS Tax Payable 36,000 Payroll Tax Expense 11,100 Medicare Tax Payable 11,100 Payroll Tax Expense 840 State Unemployment Payable 840 Payroll Tax Expense 160 Fed Unemployment Payable 160

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