Question

Recording the payroll and payroll taxes Using the earnings data developed in E3-1, and assuming that this was the 50th week of employment for Herbert and the previoue earnings to date were $119,800, prepare the journal entries for the following: a. The week's payroll. b. Payment of the payroll. c. The employer's payroll taxes.

Answer 1

Journal entry for weeks payroll:

Job 007 Wage Expense 24

Job 009 Wage Expense 22.5

Salary for machine repair 10.5

To payroll payable 57.0

Journal Entry for payroll payment

Payroll Payable $ 119857

To FICA Tax payable $9169.06

To cash / bank $ 110687.94

Journal Entry for employer contribution

Contribution to FICA tax $9169.06

To FICA Tàx payable $9169.06