Question

1) Howard company paid salaries of $116,000. All of it was taxable for social security, federal unemployment, state unemployment (3.25%). Income taxes withheld were $45,000. A) Write the payroll journal entry. Hint: This entry will include income tax payable, social security tax payable Medicare tax payable and salaries payable B) Write the payroll tax journal entry. Hint: This entry will incl social security tax payable, Medicare tax payable and salaries payable 2) Howard company paid salaries of $60,000. All of it was taxable for social security, federal unemployment, state unemployment (3.0%). Income taxes withheld were $40,000. A) Write the payroll journal entry B) Write the payroll tax journal entry 3) Howard company paid salaries of $140,000. $65,000 of it was taxable for social security, FUTA, SUTA (2.5%). Income taxes withheld were $15,000. Howard's employees put $8000 in their 401(k) plans and Howard matched it. A) Write the payroll journal entry. B) Write the payroll tax andbenfisjournal entry. 4) Howard company paid salaries of $42,000. $25,000 of it was taxable for social security, FUTA, state unemployment (3.5%). Income taxes withheld were $4500. Howard's employees put $2000 in their 401(k) plans and Howard matched it. A) Write the payroll journal entry. B) Write the navroll tax and henefits iournalentrv.

Answer 1

1. A. Salary expense account dr. 116000

Medicare tax expense account dr. 1885

To Salary payable account cr. 69115

To income tax payable cr. 45000

To social security tax payable cr. 3770

1. B. Expense is booked in A . So Payment entry -

Social security tax payable account dr. 3770

Income tax payable account dr 45000

Salary payable account dr. 69115

To bank 117885

2. A. Salary expense account dr. 60000

Medicare tax expense account dr. 900

To Salary payable account cr. 19100

To income tax payable cr. 40000

To social security tax payable cr. 1800

2. B. Expense is booked in A . So Payment entry -

Social security tax payable account dr. 1800

Income tax payable account dr 40000

Salary payable account dr. 19100

To bank account cr. 60900