10.5 During the month of March, Olinger Company\'s employees earned wages of $64
ID: 2456436 • Letter: 1
Question
10.5
During the month of March, Olinger Company's employees earned wages of $64,800. Withholdings related to these wages were $4,957 for Social Security (FICA), $7,594 for federal income tax, $3,139 for state income tax, and $405 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $709 for state unemployment tax. Prepare the necessary March 31 journal entry to record salaries and wages expense and salaries and wages payable. Assume that wages earned during March will be paid during April. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Prepare the entry to record the company's payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)Explanation / Answer
Solution:
Journal Entry to record salaries and wages payable Salaries and wages payable 648,000 FICA payable 4,957 Federal Income Tax payable 7,594 State income Tax payable 3,139 Union Dues payable 405 Net Payroll Payable 631,905 Payroll Tax expense State unemployment tax 709 Payroll Tax expense 709Related Questions
Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.