The summary of the payroll for the monthly pay period ending December 15 indicat
ID: 2531845 • Letter: T
Question
The summary of the payroll for the monthly pay period ending December 15 indicated the following:
Sales salaries
$165,000
Federal income tax withheld
32,300
Office salaries
34,000
Medical insurance withheld
14,370
Social security tax withheld
12,200
Medicare tax withheld
4,550
Journalize the entries to record (a) the payroll and (b) the employer's payroll tax expense for the month. The state unemployment tax rate is 3.1%, and the federal unemployment tax rate is 0.8%. Only $30,000 of salaries are subject to unemployment taxes.
This is to be done in Excel so if your answer is similar to that format I would really appreciate it. Thanks!! :)
Sales salaries
$165,000
Federal income tax withheld
32,300
Office salaries
34,000
Medical insurance withheld
14,370
Social security tax withheld
12,200
Medicare tax withheld
4,550
Explanation / Answer
(a)
Particulars
Debit ($)
Credit($)
Sales Salaries Expense
165,000
Office Salaries Expense
34,000
Social Security Tax Payable
12,200
Medicare Tax Payable
4,550
Federal Income Tax Payable
32,300
Medical Insurance Payable
14,370
Salaries Payable
1,35,580
(b)
Particulars
Debit ($)
Credit($)
Payroll Tax Expenses
17,920
Social Security Tax Payable
12,200
Medicare Tax Payable
4,550
State Unemployment Tax Payable
930
Federal Unemployment Tax Payable
240
State Unemployment Tax Payable = $30,000 x 3.1% = $930
Federal Unemployment Tax Payable = $30,000 x 0.8% = $240
Particulars
Debit ($)
Credit($)
Sales Salaries Expense
165,000
Office Salaries Expense
34,000
Social Security Tax Payable
12,200
Medicare Tax Payable
4,550
Federal Income Tax Payable
32,300
Medical Insurance Payable
14,370
Salaries Payable
1,35,580
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