Question

Question 20 Incomplete answer Marked out of 14.00 P Flag question Recording Payroll and Payroll Taxes The following data are taken from Jefferson Distribution Company's March payroll: Administrative salaries $34,800 Sales salaries 66,000 Custodial salaries 9,600 Total payroll $110,400 Salaries subject to FICA tax (6.2 percent + 1.45 percent) $110,400 Salaries subject to federal unemployment taxes 81,600 Salaries subject to state unemployment taxes 91,200 Federal income taxes withheld from all salaries 22,320 Assume that the company is subject to a 5.4 percent state unemployment tax and an 0.6 percent federal unemployment tax. Required Record the following in general journal form on March 31: a. Accrual of the monthly payroll. b. Payment of the net payroll. C. Accrual of the employer's payroll taxes, (Assume that the FICA tax matches the amount withheld.) d. Payment of these payroll-related liabilities. (Assume that all are settled at the same time.) Round your answers to the nearest dollar, Part A Part B Part Part D

Answer 1

Answer

Credit Requirement a & b Date Account Titles and Explanation March 31 Administrative Salaries Expense Sales Salaries Expense Custodial Salaries Expense Federal Income Tax Payable FICA Taxes Payable Salaries payable |(Record payroll for period) Debit 34,800 66,000 9,600 22,320 8,446 110400x 7.65% 79,634 79,634 79,634 March 31 Salaries payable Cash (Record payment of payroll) Requirement c&d Tax tax Rate Amounts Subject to Tax 91200 81600 Amount State Employment Taxes Payable Federal Unemployment Taxes Payable 5.4% 0.6% 4,925 490 Debit Credit 13,860 Date Account Titles and Explanation March 31 Payroll Taxes Expense FICA Taxes Payable Federal Unemployment Tax Payable State Unemployment Tax Payable (To record payroll tax expense.) 8,446 490 4,925 March 31 FICA Taxes Payable Federal Unemployment Tax Payable State Unemployment Tax Payable Federal Income Tax Payable Cash (Record payment of all liabilities related to payroll) 16,891 490 4,925 22,320 44,626