Question

Denise C. has five employees, each of whom earn $5,000 per month and has been employees since January 1st. FICA Social Security taxes are 6.2% of the first $132,000 paid to each each employee and FICA Medicare are 1.45% of gross pay. FUTA taxes are.8% and SUTA 5.4% of the first $7,000 paid to each employee. Federal Income taxes withheld were $875. State taxes withheld $602.

prepare the january 31st journal entries to record both the employee and employer payroll

Answer 1

		Debit	Credit
Jan 31st	Salaries Expense	$       25,000.00
	To FICA Social Security Tax Payable		$       1,550.00
	To FICA Medicare Payable		$          362.50
	To FUTA Tax Payable		$          200.00
	To SUTA Tax Payable		$       1,350.00
	To Federal income Tax payable		$       4,375.00
	To State tax payable		$       3,010.00
	To Salaries Payable		$     14,152.50

I H 1 5 Credit Debit $ 25,000.00 No. of Employees Pay per employee Gross Total 5000 25000 Jan 31st 8 9 6.20% 1.45% 0.80% 5.40% Salaries Expense TO FICA Social Security Tax Payable TO FICA Medicare Payable TO FUTA Tax Payable TO SUTA Tax Payable To Federal income Tax payable To State tax payable To Salaries Payable 10 11 12 13 14 15 $ $ $ $ $ $ $ 1,550.00 362.50 200.00 1,350.00 4,375.00 3,010.00 14,152.50 4375 3010 16 Debit Credit EcwN No. of Employees 5 Pay per employee 5000 Gross Total Jan 31st =17 =J6*J5 0.062 0.0145 0.008 Salaries Expense To FICA Social Security Tax Payable TO FICA Medicare Payable TO FUTA Tax Payable TO SUTA Tax Payable To Federal income Tax payable To State tax payable To Salaries Payable 0.054 =875*45 =602*35 =$E$7*B8 =$E$7*B9 =$E$7*B10 =$E$7*B11 =B12 =B13 =E7-F8-F9-F10-F11-F12-F13

Hope you understood. Thank you.