Question

Town Hodesvios due 13. The summary of the payroll for the monthly pay period ending July 15 indicated the following: lot or silol Sales salaries $125,000 to ODES Federal income tax withheld 0 22 opib 32,300 Office salaries D oon 35,000 24 Point Medical insurance withheld 7,370 Social security tax withheld 9,600 Medicare tax withheld 2,400 Journalize the entries to record (a) the payroll and (b) the employer's payroll tax expense for the month. The state unemployment tax rate is 3.1%, and the federal unemployment tax rate is 0.6%. Only $25,000 of salaries are subject to unemployment taxes. Description Date Post. Ref. Debit Credit DO 25

Answer 1

	Account Titles	Debit	Credit
(a)	Sales Salaries	$    1,25,000
	Office Salaries	$       35,000
	Social Security Tax Payable		$            9,600
	Medicare Tax Payable		$            2,400
	Federal Income Tax Payable		$         32,300
	Medical Insurance Payable		$            7,370
	Salaries Payable		$      1,08,330
(b)	Tax Payroll Expense	$       12,925
	Social Security Tax Payable		$            9,600
	Medicare Tax Payable		$            2,400
	State Unemployment Tax Payable		$               775	=25000*3.1%
	Federal Unemployment Tax Payable		$               150	=25000*0.6%