10.5 *Exercise 10-5 During the month of March, Olinger Company\'s employees earn

Question

10.5

*Exercise 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 Date Account Titles and Explanation Debit Credit Mar. 31 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. Date Account Titles and Explanation Mar. 31 Debit Credit

Explanation / Answer

Salaries and Wages expense Dr 64800             Federal Income tax payable Cr 7594             FICA Taxes Payable Cr 4957              State Income Taxes Payable Cr 3139               Union Dues Payable Cr 405              Salaries and Wages Payable Cr 48705 ( To record company's payroll tax expense) Payroll Tax Expense Dr 709        State unemployment Taxes Payable Cr 709 ( To record state unemployment tax)

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