Question

Deacon Company provides you with following information related to payroll transactions for the month of May. Prepare journal entries to record the transactions for May. Office Salaries $38,000 Sales Salaries Social Security Medicare Taxes Taxes $ 26,000 $3,968 Federal Income Taxes $928 $5,600 a. Recorded the May payroll using the payroll register information given above. b. Recorded the employer's payroll taxes resulting from the May payroll. The company had a merit rating that reduces its state unemployment tax rate to 3.5% of the first $7,000 paid each employee. Only $42,000 of the current months salaries are subject to unemployment taxes. The federal rate is 0.6% c. Recorded cash payment of salaries to employees on June 15h.

Answer 1

Credit $ particulars Debit $ Salaries Ak 74,496 Pe Social Security Taxes paygplelle Medicare Taxes payable All Federal Income Taxes payable All Net Salajes payable Alc 3968 928 5600 64,000 D expenses @ Social Security Taxes payable Alc 3968 medicale Taxes expenses Alc 928 Stateunemployment Taxes expenses ale 1470 (42000 x 3.5%) Social Security Taxes payable Ale medicare Taxes payable Al State unemployment Taxes payable All 3968 928 1470 . (c) ③ Net salaries payable ALC 64000 CashAC 8 64.000 liabilities payment on due date : 9 social security Taxes payable Al 1936 Medicare Taxes payable Ale 1856 Frederal Income Taxes payable al 15600 State unemployment Taxes paybe the 13470 Cashal 16,862