Question

31 The company paid office salaries expense of $110,000 and sales commissions expense of $35,000. Federal Income Tax withheld was $29,000. Other information related to payroll and payroll tax expense. The company recorded salaries expense and payroll tax expense. Social security taxes @ 6.2% of gross pay Medicare taxes @1.45% of gross pay Federal Unemployment of 5.4% on $36,000 of qualifying gross pay Retirement contributions were withheld from employees' paycheck totaling $7,250 These amounts were employee contributions.

Journal Entry and T-Account Please

Answer 1

Journal entries

Date	General Journal	Debit	Credit
31	Office salaries expense	110000
	Sales commissions expense	35000
	Federal income tax withheld		29000
	Social security taxes payable (6.2% x $110000)		6820
	Medicare taxes payable (1.45% x $110000)		1595
	Retirement contributions payable		7250
	Cash		100335
	(To record salaries and sales commissions expense)
	Payroll tax expense	10359
	Social security taxes payable (6.2% x $110000)		6820
	Medicare taxes payable (1.45% x $110000)		1595
	Federal unemployment tax payable (5.4% x $36000)		1944
	(To record payroll tax expense)

T-accounts

Office salaries expense					Sales commissions expense
31	110000				31	35000
End. Bal.	110000				End. Bal.	35000
Federal income tax withheld					Social Security Taxes Payable
		29000	31				6820	31
							6820	31
End. Bal.		29000			End. Bal.		13640
Medicare Taxes Payable					Retirement contributions payable
		1595	31				7250	31
		1595	31
End. Bal.		3190			End. Bal.		7250
Payroll tax expense					Federal Unemployment Tax Payable
31	10359						1944	31
End. Bal.	10359				End. Bal.		1944