Problem

Entries for payroll transactions LO2 LO6 On January 8, the end of the first weekly pay...

Entries for payroll transactions LO2 LO6

On January 8, the end of the first weekly pay period of the year, Regis Company’s payroll register showed that its employees earned $22,760 of office salaries and $65,840 of sales salaries. Withholdings from the employees’ salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $12,860 of federal income taxes, $1,340 of medical insurance deductions, and $840 of union dues. No employee earned more than $7,000 in this pay period. Regis Company does not pay for its employees’ medical insurance premiums or union dues.

Required

1. Calculate Regis Company’s FICA Social Security taxes payable and FICA Medicare taxes payable (employer portion). Prepare the journal entry to record Regis Company’s January 8 (employer) payroll expenses and liabilities.

2. Prepare the journal entry to record Regis’s (employer) unemployment taxes resulting from the January 8 payroll. Regis’s merit rating reduces its state unemployment tax rate to 4.0% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.8%.

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Solutions For Problems in Chapter 10