31. Received the following data on the monthly payroll from the payroll clerk: D
ID: 2467766 • Letter: 3
Question
31. Received the following data on the monthly payroll from the payroll clerk: Direct labor (already recorded) .. $46,034.00
New payroll data (to be recorded):
Factory:
Indirect --------------------------------------------------------------------------$22,440.00
Superintendents salary ----------------------------------------------------$ 6,200.00
Nonfactory:
Sales Salaries --------------------------------------------------------------- $ 23,950.00
Officers Salaries ------------------------------------------------------------- $14,280.00
Office Salaries ----------------------------------------------------------------- $12,620.25
Record the monthly payroll in the general journal. Remember that direct labor payroll already has been recorded as it was incurred in January. Salaries for indirect labor are recorded only at the end of the month. Debit Factory Overhead for Indirect Labor and Superintendents salaries, debit other expense accounts for the appropriate amounts, credit FICA Tax Payable for 7.5% of gross pay, credit Employees Income Tax Payable for 15% of gross pay, and credit Salaries Payable for the net pay.
31. Record the employer payroll taxes for January. All payroll taxes relating to factory personnel are debited to Factory Overhead; all payroll taxes related to nonfactory personnel are debited to Payroll Taxes ExpenseGeneral. Use a simplified FICA tax rate of 7.5% of gross pay, a state unemployment tax rate of 5.4%, and a federal unemployment tax rate of 0.8%. Since this is the first month in the current year, no employee has reached the ceilings on the payroll taxes. Use the form on page 46 (optional) to determine the amounts for the journal entry.
31. Received check from SaltWaterHut.com for the amount due.
31. Received check from FIji Stand-Up Paddle Board Co, for the amount due.
?31. Paid all employees for wages earned in january.?
General Journal Date Refer Account Debit Credit Vendor Customen 01/31/16 511 Factory Overhead 517 Sales Salaries E 518 Officers' Salaries Ex 519 Office Salaries Ex 222 FICA Tax Payable 221 Empl. Ihcome Tax Paya 211 Salaries Pay able 28,640.00 23,950.00 14,280.00 12,620.25 5,961.80 11,923.50 61,604.95 01/31/16 522 Payroll Tax Exp 511 Factory Overhead 222 FICA Tax Payable 224 State Unemploy. Tax 223 Fed. Unemploy. Tax 6,966.48 10,230.34 9,414.32 6,778.31 1,004.19 01/31/16 | SaltWaterHut.com 110 Cash 132,762.00 111 Accounts Receivable 132,762.00 01/31/16 | Fiji Stand-Up Co. 110 Caslh 39.426.00Explanation / Answer
Journal entry for payment of wages to employees earned in January
Salary Payable Dr 61,604.95
Cash Cr 61,604.95
( Wages earned in january is expense made for salary in january after deducting applicabe taxes)
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