Question

please make neat & clear. Use chart account for correct description and label amounts debit or credit. There are only 10 journal entries

Instructions Urban Window Company had gross wors of $320,000 during the weekended July 15. The amount of wages subject to social securty tax was $320.000, while the amount of wages subject to federal unemployment taxes was $40,000. Tax rates are as follows. gate Social security State remoloyment Federsi unemployment 0.6% The amount wheld from m y wages for Required Jumbo

all information is on the photos read instructions 1st photo

Answer 1

Hi

Let me know in case you face any issue:

Solution: Journal entries Credit Date July 15 Debit 320000 216 217 19200 4800 75200 220800 215 Account title and explaination Post Ref. Wages Expense 520 Social Securities taxes payable (320000*6%) Medicare taxes payable (320000*1.5%) Employees federal income tax payable 218 Wages Payable (plug) (To record the employee salary expense, withholding and payable) Payroll tax expense Social Securities taxes payable Medicare taxes payable Federal Unemployment tax payable (40000*0.6%) State Unemployment tax payable (40000*5.4%) (To record the payroll tax expense) July 15 $ 26,400 $ 19,200 $ 4,800 $ 240 $ 2,160