received the following data for the monthly payroll: Direct LAbo(already recorde

Question

received the following data for the monthly payroll:

Direct LAbo(already recorded) $19600.00

Sales Commission $5132.50

Officers' Salaries $5000.00

Office Salaries $1920.00

Record the month payroll. DIrect labor payroll has already been recorded, as it was incurred in January. Debit other salary expense accounts for the appropriate amounts, credit FWT payable for 15% of gross pay, Credit Fica tax payambel for 7.65% of gross pay Futa tax is .8%, suta tax is 1.45%. ad Credit slaries payable for the net pay. All employer paryoll tsxes (FIca, Futa and Suta )are recorded and employer taxes related to factory workders go to factor overhead. All other employer payroll taxes go to payroll tax exp. Please show all journal entries to record payroll .

Explanation / Answer

Account Heads Debit Credit 1 Sales Commissions 5132.5 Officer's salaries 5000 Office Salaries 1920 Federal Withholding Tax Payable(15%) 1807.88 FICA Payable(7.65%*(5132.5+5000+1920)) 922.02 Salaries& Commission Payable 9322.61 (Salaries & Deductions of the month) 2 Pay-roll Tax Expense FICA Payable 922.02 FUTA Payable(0.8%) 96.42 SUTA Payable(1.45%) 174.76 (Pay-roll Tax Expense recorded) 3 Salaries& Commission Payable 9322.61 FICA Payable 922.02 FUTA Payable 96.42 SUTA Payable 174.46 Cash 10515.51 (Remittance of taxes & Salary disbursement) 4 Factory OH 9322.61 Salaries& Commission Payable 9322.61 (Debit to Factory OH)

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