Question

ABC Co.’s employee’s have earned $30,000 for the pay period 5/31. Listed below are the withholdings and taxes for this payroll period. $1,250 Federal Income Taxes $7,500 FICA Social Security $5,000 FICA Medicare $2,000 Medical Insurance Premiums $800 Federal Unemployment Taxes $350 State Unemployment Taxes Create the journal entries for payroll and employer’s payroll tax expense.

Answer 1

Particulars	Debit	Credit
Payroll Expense	30,000
To, Federal Income Taxes payable		1,250
to, FICA Social Security payable		7,500
To, FICA Medicare payable		5,000
To, Medical Insurance Premiums payable		2,000
To, Federal Unemployment Taxes payable		800
To, Federal Unemployment Taxes payable		350
To, net salary payable		13,100