Question

The payroll register for Gamble Company for the week ended April 29 indicated the following: Salaries $1,440,000 86,400 Social security tax withheld Medicare tax withheld Federal income tax withheld 21,600 288,000 In addition, state and federal unemployment taxes were calculated at the rate of 5.4% and 0.6%, respectively, on $244,000 of salaries. Required: A. Joumalize the entry to record the payroll for the week of April 29." B. Journalize the entry to record the payroll tax expense incurred for the week of April 29. *Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Post. Ref. Credit Date Apr. 29 Debit 1.440,000 Journal Description Salaries expense Social security tax payable Medicare tax payable Federal income tax payable Salaries payable Payroll tax expense Social security tax payable Medicare tax payable State unemployment taxes payable (244,000x5.4%) Federal unemployment taxes payable (244,000x0.6%) 86.400 21.600 288.000 1,044.000 Accounting equatiom Assets Liabilities Equities -1.440,000 86,400 21.600 288.000 1,044,000 -122.640 86,400 21,600 13,176 1.464 122.640 Apr. 29 86,400 21,600 13.176 1.464