Question

2. (10 points) Widmer Company had gross wages of $240,000 during the week ended Jun 17. The amount of wages subject to social security tax was $240,000, while the amount of wages subject to federal and state unemployment taxes was $35,000. Tax rates are as follows: Social Security 6% Medicare 1.5% State unemployment 5.4% Federal unemployment 0.8% The total amount withheld from employee wages for federal taxes was $48,000. a. Journalize the entry to record the payroll employees earning report for the week of June 17. Date Account Name Debit Credit b: Journalize the entry to record the payroll tax expense incurred for the week of June 17 on Dec 27. (5 points) Date Account Name Debit Credit

Answer 1

ANSWER

As per the given question,

1.

Payroll expense	240000
Federal income tax withheld payable		48000
Payroll payable		192000
(To record payroll for the week of June 17)

2.

Payroll tax expenses	20170
FICA tax payable (240000*6.0%)		14400
Medicare tax payable (240000*1.5%)		3600
Federal unemployment tax payable (35000*0.8%)		280
State unemployment tax payable (35000*5.4%)		1890
(To record the payroll tax expense incurred for the week of June)

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