Question

Need help....Please read the information very carefully!!!!!

The following information about the payroll for the week anded December 20 was obtained from the records Co: ember 30 was obtained from the records of Boltz Salaries: Deductions: Sales salaries S335,000 Income tax withheld $116,800 Warehouse salaries 186,000 U.S. savings bonds 14,630 Office salaries 144,000 Group insurance 11,970 $665,000 Tax rates assumed: Social security 6% State unemployment (employer only) 5.4% Medicare 1.5% Federal unemployment employer only) 0.8% Required: 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): a. December 30, to record the payroll. b. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. of the total payroll for the last week of the year, $38,000 is subject to unemployment compensation taxes. 2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): a. On page 11 of the journal: December 30, to record the payroll. b. On page 12 of the journal: January 5, to record the employer's payroll taxes on the payroll to be paid on January 5. Since it is a new fiscal year, all 8665,000 in salaries is subject to unemployment compensation taxes.

Answer 1

Answer-1
In the books of Boltz Co.
Journal Entries
Sl No.	Date	Description	Debit	Credit
(a)	Dec-30	Sales Salaries Expenses	$ 3,35,000
		Warehouse Salaries Expenses	$ 1,86,000
		Office Salaries Expense	$ 1,44,000
		Employees Income Tax Payable		$ 1,16,800
		U.S Savings Bond Deductions Payable		$    14,630
		Group Insurance Payable		$    11,970
		Social Security tax Payable		$    39,900
		Medicare tax Payable		$      9,975
		Cash		$ 4,71,725
		(to record Payroll)
(b)	Dec-30	Payroll Tax expense
		Social Security tax Payable		$    39,900
		Medicare tax Payable		$      9,975
		Federal Unemployment tax payable (38000*0.8%)		$         304
		State Unemployment tax payable (38000*5.4%)		$      2,052
		(to record employer's payroll tax expense)
	Dec-31	Employees Income Tax Payable	$ 1,16,800
		U.S Savings Bond Deductions Payable	$    14,630
		Group Insurance Payable	$    11,970
		Social Security tax Payable	$    79,800
		Medicare tax Payable	$    19,950
		Federal Unemployment tax payable (38000*0.8%)	$         304
		State Unemployment tax payable (38000*5.4%)	$      2,052
		Cash		$ 2,45,506
		(being payroll taxes paid to govt.)
Answer-2
In the books of Boltz Co.
Journal Entries
Sl No.	Date	Description	Debit	Credit
(a)	Dec-30	Sales Salaries Expenses	$ 3,35,000
		Warehouse Salaries Expenses	$ 1,86,000
		Office Salaries Expense	$ 1,44,000
		Employees Income Tax Payable		$ 1,16,800
		U.S Savings Bond Deductions Payable		$    14,630
		Group Insurance Payable		$    11,970
		Social Security tax Payable		$    39,900
		Medicare tax Payable		$      9,975
		Salaries Payable		$ 4,71,725
		(to record Payroll)
(b)	Jan-05	Payroll Tax expense
		Social Security tax Payable		$    39,900
		Medicare tax Payable		$      9,975
		Federal Unemployment tax payable (665000*.8%)		$      5,320
		State Unemployment tax payable (665000*5.4%)		$    35,910
		(to record employer's payroll tax expense)
	Jan-05	Employees Income Tax Payable	$ 1,16,800
		U.S Savings Bond Deductions Payable	$    14,630
		Group Insurance Payable	$    11,970
		Social Security tax Payable	$    79,800
		Medicare tax Payable	$    19,950
		Federal Unemployment tax payable (665000*.8%)	$      5,320
		State Unemployment tax payable (665000*5.4%)	$    35,910
		Salaries Payable	$ 4,71,725
		Cash		$ 7,56,105