Exercise 10-5 During the month of March, Sheridan Company’s employees earned wag

Question

Exercise 10-5

During the month of March, Sheridan Company’s employees earned wages of $78,000. Withholdings related to these wages were $5,967 for Social Security (FICA), $9,141 for federal income tax, $3,778 for state income tax, and $488 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $853 for state unemployment tax.

Exercise 10-5 During the month of March, Sheridan Company's employees earned wages of $78,000. Withholdings related to these wages were $5,967 for Social Security (FICA), $9,141 for federal income tax, $3,778 for state income tax, and $488 for union dues. The company incurred no cost related to these earnings for federal unemployment ta:x but incurred $853 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.) Date Account Titles and Explanation Mar. 31 Debit Credit

Explanation / Answer

Journal entry to record March 31 Salaries and Wages expense Date General Journal Debit Credit Mar-31 Salaries and Wages Expense $78,000 FICA Tax Payable $5,967 Federal Income Tax Withholdings Payable $9,141 State Income Tax Withholdings Payable $3,778 Union dues Payable $488 Salaries and Wages Payable $58,626 Journal entry to record the Company's payroll tax expense Date General Journal Debit Credit Mar-31 State Unemployment Tax Expense $853 State Unemployment Tax Payable $853

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.