Question

Lee Company has the following information for the pay period of December 15 – 31:

Gross payroll	$16,000		Federal income tax withheld	$4,000
Social security rate	6%		Federal unemployment tax rate	0.8%
Medicare rate	1.5%		State unemployment tax rate	5.4%

Answer 1

Gross Payroll = $16000

Social Security tax payable 6% = $960

Medicare care tax 1.5% = $240

Employee Federal income tax payable = $4000

Salaries payable = $10800

Federal unemployment tax payable = $128

State unemployment tax payable = $864

Journal Entries:

Accounts Head	Debit $	Credit $
Salaries Expense	16000
Social Security tax payable		960
Medicare care tax		240
Employee Federal income tax payable		4000
Salaries payable		10800
(payment ot employees for period Dec. 15 - 31)
Payroll Tax Expenses	2192
Social Security tax payable		960
Medicare care tax payable		240
Federal unemployment tax payable		128
State unemployment tax payable		864