Question

Example 6-5

The journal entry to record the payroll from Figure 6.1, on pages 6-2 and 6-3, would be:

	Debit	Credit
Wages Expense	24,762.70
FICA Taxes Payable—OASDI		1,535.29
FICA Taxes Payable—HI		359.06
FIT Payable		3,714.00
SIT Payable		55.25
Group Insurance Payments W/H		54.70
Cash		19,044.40

Example 6-7

The journal entry to record the payroll tax entry from Figure 6.1 on pages 6-2 and 6-3 would be (assume a SUTA tax rate of 3.0%):

	Debit	Credit
Payroll Taxes	2,785.81
FICA Taxes Payable—OASDI		1,535.29
FICA Taxes Payable—HI		359.06
FUTA Taxes Payable		148.58
SUTA Taxes Payable		742.88

Carmen Santos is owner and sole employee of CS Corporation. He pays himself a salary of $2,400 this week.

Additional tax information includes:
	FICA tax—OASDI	6.2% on first $132,900
	FICA tax—HI	1.45% on total pay
	Federal income tax	$532.00 per pay
	State income tax	22% of the federal income tax withholding
	Federal unemployment tax	0.6% on first $7,000
	State unemployment tax	0.05% on first $14,000
Additional payroll deductions include:
	401(k) plan	3% per pay
	Child support garnishment	$125 per pay
	Health insurance premium	$110 per pay

Record the payroll entry and payroll tax entry for the pay of the week ended June 7 (his year-to-date pay is $51,500).

If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.

	Account	Debit	Credit
Payment of wages	Wages Expense
	FICA Taxes Payable-OASDI
	FICA Taxes Payable-HI
	Employees FIT Payable
	Employees SIT Payable
	Retirement Plan Contributions Payable
	Garnishment Payable
	Health Insurance Premiums Payable
	SUTA Taxes Payable
Payroll taxes	Payroll Taxes
	FICA Taxes Payable-OASDI
	FICA Taxes Payable-HI

Answer 1

	Account	Debit	Credit
Payment of wages	Wages Expense	$  2,400.00
	FICA Taxes Payable-OASDI (2400 x 6.2%)		$     148.80
	FICA Taxes Payable-HI (2400 x 1.45%)		$       34.80
	Employees FIT Payable		$     532.00
	Employees SIT Payable (532 x 22%)		$     117.04
	Retirement Plan Contributions Payable (2400 x 3%)		$       72.00
	Garnishment Payable		$     125.00
	Health Insurance Premiums Payable		$     110.00
	Cash		$  1,260.36
Payroll taxes	Payroll Taxes	$     184.80
	FICA Taxes Payable-OASDI		$     148.80
	FICA Taxes Payable-HI		$       34.80
	SUTA Taxes Payable (.05% x 2400)		$         1.20