The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.:
Salaries: Deductions:
Sales salaries $177,000 Income tax withheld $64,064
Warehouse salaries 97,000 U.S. savings bonds 8,008
Office salaries 90,000 Group insurance 6,552
$364,000
Tax rates assumed:
Social security, 6%
Medicare, 1.5%
State unemployment (employer only), 5.4%
Federal unemployment (employer only), 0.8%
Required:
If an amount box does not require an entry, leave it blank.
1a. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30, to record the payroll.
Date Account Debit Credit
Dec. 30
Sales Salaries Expense
fill in the blank 2
177,000
fill in the blank 3
Warehouse Salaries Expense
fill in the blank 5
97,000
fill in the blank 6
Office Salaries Expense
fill in the blank 8
90,000
fill in the blank 9
Employees Income Tax Payable
fill in the blank 11
fill in the blank 12
64,064
Social Security Tax Payable
fill in the blank 14
fill in the blank 15
21,840
Medicare Tax Payable
fill in the blank 17
fill in the blank 18
5,460
U.S. Savings Bond Deductions Payable
fill in the blank 20
fill in the blank 21
8,008
Group Insurance Payable
fill in the blank 23
fill in the blank 24
6,552
Salaries Payable
fill in the blank 26
fill in the blank 27
364,000
1b. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $18,000 is subject to unemployment compensation taxes.
Date Account Debit Credit
Dec. 30
Payroll Tax Expense
fill in the blank 29
28,416
fill in the blank 30
Social Security Tax Payable
fill in the blank 32
fill in the blank 33
21,840
Medicare Tax Payable
fill in the blank 35
fill in the blank 36
5,460
State Unemployment Tax Payable
fill in the blank 38
fill in the blank 39
972
Federal Unemployment Tax Payable
fill in the blank 41
fill in the blank 42
144
2a. Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year, journalize the entry on December 30, to record the payroll.
Date Account Debit Credit
Dec. 30
Sales Salaries Expense
fill in the blank 44
fill in the blank 45
Warehouse Salaries Expense
fill in the blank 47
fill in the blank 48
Office Salaries Expense
fill in the blank 50
fill in the blank 51
Employees Income Tax Payable
fill in the blank 53
fill in the blank 54
Social Security Tax Payable
fill in the blank 56
fill in the blank 57
Medicare Tax Payable
fill in the blank 59
fill in the blank 60
U.S. Savings Bond Deductions Payable
fill in the blank 62
fill in the blank 63
Group Insurance Payable
fill in the blank 65
fill in the blank 66
Salaries Payable
fill in the blank 68
fill in the blank 69
2b. Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year, journalize the entry on January 4, to record the employer's payroll taxes on the payroll to be paid on January 4. Because it is a new fiscal year, all $364,000 in salaries is subject to unemployment compensation taxes.
Date Account Debit Credit
Jan. 4
Payroll Tax Expense
fill in the blank 71
fill in the blank 72
Social Security Tax Payable
fill in the blank 74
fill in the blank 75
Medicare Tax Payable
fill in the blank 77
fill in the blank 78
State Unemployment Tax Payable
fill in the blank 80
fill in the blank 81
Federal Unemployment Tax Payable
fill in the blank 83
fill in the blank 84
