Entries for payroll and payroll taxes Instructions Chart of Accounts Journal X I
ID: 2570882 • Letter: E
Question
Entries for payroll and payroll taxes
Instructions
Chart of Accounts
Journal
X
Instructions
The following information about the payroll for the week ended December 30 was obtained from the records of Qualitech Co.:
Salaries: Sales salaries $325,000 Warehouse salaries 192,000 Office salaries 137,000 $654,000 Deductions: Income tax withheld $116,200 Social security tax withheld 39,240 Medicare tax withheld 9,810 U.S. savings bonds 14,388 Group insurance 11,772 $191,410 Tax rates assumed: Social security 6% Medicare 1.5% State unemployment (employer only) 5.4% Federal unemployment (employer only) 0.8%Explanation / Answer
1. a. Dec. 30 Sales Salaries Expense.......................................... 325,000
Warehouse Salaries Expense............................... 192,000
Office Salaries Expense........................................ 137,000
Employees Income Tax Payable.................... 116,200
Social Security Tax Payable........................... 39240
Medicare Tax Payable.................................... 9,810
Bond Deductions Payable.............................. 14,388
Group Insurance Payable.............................. 11,772
Salaries Payable.............................................. 462,590
b. Dec. 30 Payroll Tax Expense............................................. 51,840
Social Security Tax Payable........................... 39,240
Medicare Tax Payable.................................... 9,810
State Unemployment Tax Payable................ 2,4301
Federal Unemployment Tax Payable............ 3602
1$45,000 × 5.4%
2$45,000 × 0.8%
2. a. Dec. 30 Sales Salaries Expense.......................................... 325,000
Warehouse Salaries Expense............................... 192,000
Office Salaries Expense........................................ 137,000
Employees Income Tax Payable.................... 116,200
Social Security Tax Payable........................... 39,2403
Medicare Tax Payable.................................... 9,8104
Bond Deductions Payable.............................. 14,388
Group Insurance Payable.............................. 11,772
Salaries Payable.............................................. 462,590
3$654,000 × 6%
4$654,000 × 1.5%
b. Jan. 5 Payroll Tax Expense............................................. 89,598
Social Security Tax Payable........................... 39,240
Medicare Tax Payable.................................... 9,810
State Unemployment Tax Payable................ 35,3165
Federal Unemployment Tax Payable............ 5,2326
5$654,000 × 5.4%
6$654,000 × 0.8%
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