GENERAL JOURNAL 1 March 15 2. Mar 15 The payroll clerk at Dalton, Inc., has used
ID: 2597277 • Letter: G
Question
GENERAL JOURNAL
1
March 15
2. Mar 15
The payroll clerk at Dalton, Inc., has used a spreadsheet program to produce a printout of the salaries for March 15. Employees' total earnings $90,000 Deductions from earnings: Federal income tax $14,400 State income tax 3,600 Social Security tax 5,580 Medicare tax 1,305 Medical insurance 1,800 Total deductions 26,685 Take-home pay $63,315 Use the data in the spreadsheet to: 1. Prepare the entry to record the weekly salary. The salaries will not be paid until March 20. 2. Prepare the entry to record the employer's payroll tax expense. In addition to the data for Social Security and Medicare in the table, which the employer must also pay, assume a 0.8% federal unemployment tax rate and a 5.4% state unemployment tax rate. Also assume that all wages are subject to these two taxes.
GENERAL JOURNAL
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DATE DESCRIPTION DOC.NO. POST.
REF. DEBIT CREDIT 1
March 15
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2 3
3 4
4 5
5 6
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2. Mar 15
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Explanation / Answer
Date Description Doc. No. Post. Ref. Debit Credit Mar. 15 Salaries expense 90000 Social security tax payable 5580 Medicare tax payable 1305 Federal income tax payable 14400 State income tax payable 3600 Medical insurance payable 1800 Salaries payable 63315 (To record payroll for week ended March 15) Mar. 15 Payroll tax expense 12465 Social security tax payable 5580 Medicare tax payable 1305 State unemployment tax payable ($90000 x 5.4%) 4860 Federal unemployment tax payable ($90000 x 0.8%) 720 (To record payroll tax expense for week ended March 15)
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