Question

The payroll register for D. Salah Company for the week ended May 18 indicated the following:

Salaries	$659,000
Federal income tax withheld	131,800

The salaries were all subject to the 6.0% social security tax and the 1.5% Medicare tax. In addition, state and federal unemployment taxes were calculated at the rate of 5.4% and 0.8%, respectively, on $12,521 of salaries.

	Required:
	a. Journalize the entry to record the payroll for the week of May 18.*
	b. Journalize the entry to record the payroll tax expense incurred for the week of May 18.* * Refer to the Chart of Accounts for exact wording of account titles. Round your answers to the nearest whole dollar.

Answer 1

Solution May 18 659000 39540 Salarles expense Social Security tax payable (659000% 6) Medecare tax payable (659000 X 105%) Employees federal Income 1 tax payable Salariez payable 9885 131800 477775

50201 May is 39540 payroll tax expense cocial security Tax payable Medecare tax payable (659000 X 1.5%) state unemployment tax payable (12521 545) federal unemployment tax 9885 676 10o - pay able (12521 x 0.80)