Entries for Payroll and Payroll Taxes The following information about the payrol
ID: 2527212 • Letter: E
Question
Entries for Payroll and Payroll Taxes
The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co.:
Required:
If an amount box does not require an entry, leave it blank.
1a. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30 to record the payroll.
1b. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30 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, $31,000 is subject to unemployment compensation taxes.
2a. 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 entry on December 30 to record the payroll.
2b. 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 entry to record the employer's payroll taxes on the payroll to be paid on January 5. Because it is a new fiscal year, all $625,000 in salaries is subject to unemployment compensation taxes.
Salaries: Deductions: Sales salaries $303,000 Income tax withheld $110,000 Warehouse salaries 167,000 U.S. savings bonds 13,750 Office salaries 155,000 Group insurance 11,250 $625,000Explanation / Answer
S. No. Date Account Tittle Amount Amount 1(a) 30-Dec Sales Salaries Expense $303,000 Warehouse Salaries Expense $167,000 Office Salaries Expense $155,000 Employees Income Tax Payable $110,000 Social Security Tax Payable ($625000 * 6%) $37,500 Medicare Tax Payable ($6,25000* 1.5%) $9,375 Bond Deductions Payable $13,750 Group Insurance Payable $11,250 Salaries Payable $443,125 b. 30, Dec. Payroll Tax Expense $48,797 Social Security Tax Payable $37,500 Medicare Tax Payable $9,375 State Unemployment Tax Payable ($31,000*5.4%) $1,674 Federal Unemployment Tax Payable ($31,000 * 0.8%) $248 2(a). 30-Dec Sales Salaries Expense $303,000 Warehouse Salaries Expense $167,000 Office Salaries Expense $155,000 Employees Income Tax Payable $110,000 Social Security Tax Payable ($625000 * 6%) $37,500 Medicare Tax Payable ($6,25000* 1.5%) $9,375 Bond Deductions Payable $13,750 Group Insurance Payable $11,250 Salaries Payable $443,125 2(b). 30-Dec Payroll Tax Expense $85,625 Social Security Tax Payable $37,500 Medicare Tax Payable $9,375 State Unemployment Tax Payable ($625000*5.4%) $33,750 Federal Unemployment Tax Payable ($625,000 * 0.8%) $5,000
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