For the year ended December 31, 2011, Niehaus Electrical Repair Company reports the following summary payroll data.
Gross earnings:
Administrative salaries .........$180,000
Electricians€™ wages ...........370,000
Total .................$550,000
Deductions:
FICA taxes ................$ 38,000
Federal income taxes withheld ........168,000
State income taxes withheld (2.6%) .....14,300
United Way contributions payable .......27,500
Hospital insurance premiums .........17,200
Total ................$265,000
Niehaus Company€™s payroll taxes are: FICA 8%, state unemployment 2.5% (due to a stable employment record), and 0.8% federal unemployment. Gross earnings subject to FICA taxes total $475,000, and unemployment taxes total $125,000.
Instructions
(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.
(c) The W-2 Wage and Tax Statement requires the following dollar data.

Complete the required data for the followingemployees.

Transcribed Image Text:

Earnings Federal Income Tax Wihhela mployee Anna Hashmi Sharon Bishop $59,000 26.000 Federal Income Tax Withheld $28,500 10,200