The following information about the payroll for the week ended December 30 was o
ID: 2462723 • Letter: T
Question
The following information about the payroll for the week ended December 30 was obtained from the records of Qualitech Co.:
1. Assuming that the payroll for the last week of the year is to be paid on December 31, 2015, journalize the following entries
A. December 30, 2015, to record the payroll. Include the year when enter the date in the journal.
B. December 30, 2015, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $35,000 is subject to unemployment compensation taxes. Include the year when enter the date in the journal.
2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries:
A. On page 11 of the journal: December 30, 2015, to record the payroll. Include the year when enter the date in the journal.
B. On page 12 of the journal: January 5, 2016, to record the employer's payroll taxes on the payroll to be paid on January 5, 2016. Because it is a new fiscal year, all $675,000 in salaries is subject to unemployment compensation taxes. Include the year when enter the date in the
salaries sales salaries 350000 warehouse salaries 180000 office salaries 145000 total 675000 deductions: income tax withheld 118800 social security tax withheld 40500 medicare tax withheld 10125 us savings bond 14850 group insurance 12150 total 196425 tax rate assumed: social security 6% medicare 1.5% state unemployment 5.4% federal unemployment 0.8%Explanation / Answer
a. Dec 30, 2016 Sales Salaries Expense $350,000 Warehouse Salaries Expense $180,000 Office Salaries Expense $145,000 Employees Income Tax Payable $118,800 Social Security Tax Payable $40,500 Medicare Tax Payable $10,125 Bond Deductions Payable $14,850 Group Insurance Payable $12,150 Salaries Payable $478,575 Dec 31, 2016 Payroll Tax Expense $52,795 Social Security Tax Payable $40,500 Medicare Tax Payable $10,125 State Unemployment Tax Payable $35,000 x 5.4% $1,890 Federal Unemployment Tax Payable $35000 x 0.8% $280 b) 12/30/16 Sales Salaries Expense $350,000 Warehouse Salaries Expense $180,000 Office Salaries Expense $145,000 Employees Income Tax Payable $118,800 Social Security Tax Payable $675,000 x 6% $40,500 Medicare Tax Payable $675000 x 1.5% $10,125 Bond Deductions Payable $14,850 Group Insurance Payable $12,150 Salaries Payable $478,575 Jan 5, 2017 Payroll Tax Expense $92,475 Social Security Tax Payable $40,500 Medicare Tax Payable $10,125 State Unemployment Tax Payable $675,000 x 5.4% $36,450 Federal Unemployment Tax Payable $675000 x 0.8% $5,400
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