Question

EX 11-13 Payroll entries Widmer Company had gross wages of $240,000 during the weck ended June 17. The amount of wages subject to social security tax was $240,000, while the amount of wages subject to federal and state unemployment taxes was $35,000. Tax rates are as follows OBJ.3 Social security Medicate State unemployment Federal unemployment 60% 15% 08% The total amount withhekd from employee wages for federal taxes was $48,000. a. Journalize the entry to record the payroll for the week of June 17. b. Journalize the entry to record the payroll tax expense incurred for the week of June 17

Answer 1

a
Wages Expense	240000
Social Security Tax Payable		14400	=240000*6%
Medicare Tax Payable		3600	=240000*1.5%
Employees Federal Income Tax Payable		48000
Wages Payable		174000
b
Payroll Tax Expense	20170
Social Security Tax Payable		14400
Medicare Tax Payable		3600
State Unemployment Tax Payable		1890	=35000*5.4%
Federal Unemployment Tax Payable		280	=35000*0.8%