Question

Part IV Journalized payroll entries. Prepare the necessary general journal entries for Mighty Machines, Inc., a manufacturer of small engines, for the month of September 2006. Note that Mighty Machine pays its hourly employees twice a month. Sept. 15 The payroll for the first half of September for the hourly factory workers totaled $32,000. Deductions: social security taxes, $2,000 medicare taxes, $500; federal income taxes, $5,000. 15 15 30 Issued a voucher to pay the net payroll. Recorded payment of the voucher Recorded distribution of the factory wages earned during the entire month of September. The summary of factory wages showed total direct labor at $50,000 and total indirect labor at $20,000. Record employer's payroll tax liability for the month as follows: social security taxes, $2,000; medicare taxes, $500, federal unemployment taxes, $200 state unemployment taxes, $3,000. 30 Class Dace

Answer 1

JOURNAL
Date	Particulars	Debit	Credit
15-Sep	Gross wages	32000
	SS taxes		2000
	Medicare taxes		500
	Federal income tax		5000
	Wages Payable		24500
15-Sep	No entry
15-Sep	Wages payable	24500
	Cash		24500
30-Sep	Direct labour	50000
	Indirect labour	20000
	Wages payable		70000
30-Sep	SS tax (employer) expense	2000
	Medicare( employer) expense	500
	Federal unemployment tax (Employer)	200
	State unemployment tax (employer)	3000
	SS (employer) liability		2000
	Medicare( employer) liability		500
	Federal unemployment tax (Employer) liability	200
	State unemployment tax (employer) liability	3000