URCES Do It! Review 1o-1b During the month of February, Ayayai Corp.\'s employee

Question

URCES Do It! Review 1o-1b During the month of February, Ayayai Corp.'s employees earned wages of $108,040. withholdings related to these wages were $8,265 for Social Security (FICA), $10,366 for federal income tax, and $2,774 for state income tax. Costs incurred for unemployment taxes were $161 for federal and $234 for state Prepare the February 28 journal entries for (a) Salaries and wages expense and salaries and wages payable assuming that all February wages will be paid in March (b) The company's payroll tax expense (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation a) Feb. 28 Debit Credit b) Feb. 28 ns, Inc. All Rights Reserved. A Division of

Explanation / Answer

28 th february Salaries and wages A/C DR 108040$
To Outstaning salaries and wages payable A/c CR 108040$

28 th February Social security A/C Dr 8265$
Federal incometax A/C Dr 10366$
State Income Tax Dr 2774$
Unemployement tax for federal Dr 161$
Unemplloyement tax for state Dr 234$
To salaries and wages Cr 21800$

(Being Taxes paid out of salaries)
Payment entry
Salaries and wages A/C Dr 86240$
To Bank A/C Cr 86240$
(Being salaries paid)

Dec31,2017 Building A/C Dr 620000$
To 10% Mortgage note A/C Cr 620000$
(Being issue of mortgage note for obtaining finance of loan)
Dec 31,2018.
10% Mortgage note A/C A/C Dr 100902$
to Bank A/C 100902$
(Being Annual instalement paid including interest)

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