Question

General Journal 2. Record the journal entry for the payroll, crediting Cash for the net pay. When required, enter amounts in dollars and cents. If an amount box does not require an entry, leave it blank. Page: DATE ACCOUNT TITLE DOC. POST. DERIT CREDIT NO. REF DEBIT CREDIT 1 20-Dec31 Wages and salaries expense Employee federal income tax payable Social Security tax payable Medicare tax payable United Way contributions payable Cash Payroll for week ended December 31

Answer 1

1.

As per the year 2020:

Social Security tax rate is 6.2% on $8,000 income and Medicare tax rate is 1.45% on all income ($8,700).

Hence,

Social Security amount = $8,000 × 6.2%

                                    = $496 (Answer)

Medicare tax amount = $8,700 × 1.45%

                                    = $126.15 (Answer)

2.

Required journal is as below:

ACCOUNT TITLE Wages and salaries expense DOC. POST. NO. REF. Page: CREDIT DEBIT $8,700 Employee federal income tax payable Social Security tax payable Medicare tax payable $920 S496 $126.154 $200 5 S6,957.856 United Way contributions payable Cash Payroll for week ended December 31

Note: the amount of cash is the balance figure; (87,000 – 920 – 496 – 126.15 – 200 =) $6,957.85.