takeAssignmentMain.doinwoker assignments&takeAssignmentSessionLocator; massignme

ID: 2542964 • Letter: T

Question

takeAssignmentMain.doinwoker assignments&takeAssignmentSessionLocator; massignment-take&inprogress; false On January 21, the column totals of the payroll register for Great Products Company showed that its sales employees had earned $15,410, its truck driver employes had eaned $10,790, and iRs office employees had earned $8,630. Social Security taxes were withheld at an assumed rate of 6.2 percent, and Medicare taxes were withheld at an assumed rate of 1.45 percent. Other deductions consisted of federal income tax, $4,180; and union dues, $550 Determine the amount of Social Security and Medcare taxes withheld and record the general journal entry for the payr, crediting Salaries payable for the net pay. All earnings were taxable. If necessary, round intermed ate caloulations and the final answer to the nearest cent. If an amount box does not require an entry, leave it blank GENERAL SOURNAL ESCRIP CRED From paytoll register

Explanation / Answer

Total salary earned = Sales employees’ earnings + Drivers’ earnings + Office employees’ earnings
=> $15,410 + $10,790 + $8,630 = $34,830

Social security taxes withheld = $34,830*6.2% = $2,159.46
Medicare taxes withheld = $34,830*1.45% = $505.04
Federal income tax = $4,180
Union Dues = $550

Salaries Payable = $34,830 - $2,159.46 - $505.04 - $4,180 - $550= $27,435.14

Date

Description

Debit

Credit

Jan-21

Salaries Expense

$34,830.00

Social Security Payable

$2,159.46

Medicare Taxes Payable

$505.40

Federal Income Taxes Payable

$4,180.00

Union Dues Payable

$550.00

Salaries Payable

$27,435.14