Question

Help System Announcements Problem 11-05A (Video) For the year ended December 31, 2020, Concord Electrical Repair Company reports the following summary payroll data. $192,000 386,000 $578,000 Gross earnings: Administrative salaries Electricians' wages Total Deductions: FICA taxes Federal income taxes withheld State income taxes withheld (3%) United Fund contributions payable Health insurance premiums Total $39,133 179,500 17,340 28,900 17,000 $281,873 Concord's payroll taxes are Social Security tax 6.2%, Medicare tax 1.45%, state unemployment 2.5% (due to a stable employment record), an earnings subject to Social Security taxes of 6.2% total $496,000, and gross earnings subject to unemployment taxes total $131,000. No emple FICA taxes. (a) Prepare a summary journal entry at December 31 for the full year's payroll. (b) Journalize the adjusting entry at December 31 to record the employer's payroll taxes.

Answer 1

(a)

Date	Particulars	Debit ($)	Credit ($)
31-Dec	Administrative salaries expense	192,000
	Electricians' wages expense	386,000
	FICA Taxes Payable		39,133
	Federal income taxes payable		179,500
	State income taxes payable		17,340
	United fund contribution payable		28,900
	Health insurance premiums payable		17,000
	Salaries and wages payable		296,127

(b)

Date	Particulars	Debit ($)	Credit ($)	Working
31-Dec	Payroll tax expense	43,100
	Social security tax payable		30,752	496,000 * 6.2%
	Medicare tax payable		8,381	578,000 * 1.45%
	Federal unemployment tax payable		1,048	131,000 * 0.8%
	State unemployment tax payable		3,275	131,000 * 2.5%

(c)

Employee	Wages, Tips, other compensation	Federal income tax withheld	State income tax withheld	FICA Wages	FICA withheld
Maria Sandoval	60,000	29,400	1,800	60,000	4,590.00
Jennifer Mingenback	30,000	11,700	900	30,000	2,295.00