Question

During the month of February, Indigo Corporation's employees earned wages of $102,000. Withholdings related to these wages were $7,803 for FICA, $20,590 for federal income tax, and $5,510 for state income tax. Costs incurred for unemployment taxes were $319 for federal and $464 for state. Prepare the February 28 journal entries for (a) Salaries and wages expense and salaries and wages payable assuming that all February wages will be paid in March. (b) The company's payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

No.	Date	Account titles and explanation	Debit	Credit
(a)	Feb. 28	Salaries and Wages Expense	$102000
		FICA Taxes Payable		$7803
		Federal Income Tax		$20590
		State income Tax		$5510
		Salaries and Wages Payable		$68097
(b)	Feb. 28	Payroll Taxes Expense	$8586
		FICA Taxes Payable		$7803
		Federal unemployment tax payable		$319
		State unemployment tax payable		$464