Payroll Entries The payroll register for D. Salah Company for the week ended May

Question

Payroll Entries The payroll register for D. Salah Company for the week ended May 18 indicated the following: Salaries Federal income tax withheld $660,000 180,000 The salaries were all subject to the 6.0% social security tax and the 1.5% Medicare tax. In addition, state and federal unemployment taxes were calculated at the rate of 5.4% and 0.8%, respectively, on $50,000 of salaries. For a compound transaction, if an amount box does not require an entry, leave it blank. a. Journalize the entry to record the payroll for the week of May 18. May 18 b. Journalize the entry to record the payroll tax expense incurred for the week of May 18. May 18

Explanation / Answer

Journal Entry S. No. Date Particulars Dr. Amt. Cr. Amt. a. 18-May Salaries Expense    660,000.00    Federal I Tax Payable    180,000.00    Social Security Tax Payable      39,600.00 $660,000 X 6%    Medicare Tax Payable        9,900.00 $660,000 X 1.50%    Salaries Payable    430,500.00 (To record the payroll) b. 18-May Payroll Taxes Expense      52,600.00    Social Security Tax Payable         39,600.00 $660,000 X 6%    Medicare Tax Payable        9,900.00 $660,000 X 1.50%    SUTA Payable        2,700.00 $50,000 X 5.40%    FUTA Payable            400.00 $50,000 X 0.80% (To record the payroll tax expense)

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