Question

The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co: 

Salaries:		Deductions:
Sales salaries	$330.000	Income tax withheld	$117.200
Warehouse salaries	184,000	U.S.savings bonds	14.520
Office sales	146,000	Group insurance	11,880
	$660,000

Tax rates assumed:

Social security	6%	State unemployment(employer only) 5.4%
Medicare	1.5%	Federal unemployment(employer only) 0.8%

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. or the total payroll for the last week of the year, $33,000 is subject to unemployment compensation taxes

Answer 1

ANSWER

Accounts Title	Dr	Cr
1) a
Sales Salaries Expenses	$330,000
Warehouses Salaries Expenses	$184,000
Office salaries Expenses	146,000
Income Tax withholding payable		$117,200
Social security Taxes payable (660,000*6%)		39,600
Medicare taxes Payable		9,900
Bond Deduction Payable		14,520
Group Insurance payable		11,880
salaries Payable		$466,900
(being payroll recorded)
1) b
Payroll tax expenses	51,546
Social security Taxes payable (660,000*6%)		39,600
Medicare taxes Payable		9,900
State unemployment taxes payable (33,000*5.4%)		1,782
Federal unemployment taxes payable (33,000*.8%)		264