Question

Problem 8-4A Record payroll (LO8-3) Vacation Destinations offers its employees the option of contributing up to 6% of their salaries to a voluntary retirement plan, with the employer matching their contribution. The company also pays 100% of medical and life insurance premiums. Assume that no employee's cumulative wages exceed the relevant wage bases. Payroll information for the first biweekly payroll period ending February 14 is listed below. Wages and salaries Employee contribution to voluntary retirement plan Medical insurance premiums paid by employer Life insurance premiums paid by employer Federal and state income tax withheld Social Security tax rate Medicare tax rate Federal and state unemployment tax rat $750, eee 31,580 15,750 3,eee 187,5ee 6.2ex 1.45% 6.2ex Required: 1. Record the employee salary expense, withholdings, and salaries payable. 2. Record the employer-provided fringe benefits 3. Record the employer payroll taxes. Record the necessary entry for the scenarios given above. (If no entry is required for a transaction event, select "No Journal Entry Required in the first account field.)

Answer 1

ournal Entry
S. No.	Date	Accoutn Tittle	Debit	Credit
1	14-Feb	Wages & Salaries Expense	$750,000
		Accounts Payable (Retirement Plan)		$31,500
		Federal & State Income Tax Payable		$187,500
		Social Security Tax Payable (750000*6.2%)		$46,500
		Medicare Tax Payable (750000*1.45%)		$10,875
		Wages & Salaries Payable (BF)		$473,625
		To Record Salary & Wages Expense
2	14-Feb	Wages & Salaries Expense	53,600.00
		Accounts Payable (Retirement Plan)		$31,500
		Medical Insurance Payable		$15,750
		Life Insurance Payable		$3,000
		TO Record Frieng Benefit
3	14-Feb	Payroll Taxes	$103,875
		Social Security Tax Payable		$46,500
		Medicare Tax Payable		$10,875
		Federal & Unemployment Tax Payble (750000*6.20%)		$46,500
		TO Reocrd pyaroll tax expense