Question

During the month of March, Sunland Company's employees earned wages of $48,000. Withholdings related to these wages were 53.672 for FICA 55.760 for federal income tax, $2.400 for state income tax, and $200 for unlondues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $480 for state unemployment tax. Prepare the necessary March 31 journal entry to record salaries and wages expense and salaries and wages payable. Assume that wages earned during March will be paid during April (Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Tities and Explanation Debit Credit Mar 31

Answer 1

Answer is given below

Credit Debit $48,000 | Date Journal March 31st Salaries and Wages Expense To Withheld income tax payable To Federal Income tax payable To State Income tax payable To Union dues payable To Salaries and Wages Payable (Being Payroll recorded) March 31st Payroll Tax Expense To State Unemployment taxes payable (Being Payroll tax expense recorded) $3,672 $5,760 $2,400 $288 $35,880 $480 $480