Exercise 10-5 During the month of March, Blossom Company’s employees earned wage
ID: 2530346 • Letter: E
Question
Exercise 10-5
During the month of March, Blossom Company’s employees earned wages of $72,000. Withholdings related to these wages were $5,508 for Social Security (FICA), $8,438 for federal income tax, $3,488 for state income tax, and $450 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $788 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.)
Exercise 10-5
During the month of March, Blossom Company’s employees earned wages of $72,000. Withholdings related to these wages were $5,508 for Social Security (FICA), $8,438 for federal income tax, $3,488 for state income tax, and $450 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $788 for state unemployment tax.
Explanation / Answer
Mar-31 Salaries and wages expense 72000 FICA taxes payable 5508 Federal income tax payable 8438 State income tax payable 3488 Union dues payable 450 Salaries and wages payable 54116 Mar-31 Payroll tax expense 6296 FICA taxes payable 5508 State unemployement tax payable 788
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