For the year ended December 31, 2011, R. Visnak Company reports the following summary payroll data.
Gross earnings:
Administrative salaries ......... .$180,000
Electricians€™ wages .............320,000
Total ................$500,000
Deductions:
FICA taxes ...............$ 35,200
Federal income taxes withheld .......153,000
State income taxes withheld (2.6%) .......13,000
United Way contributions payable ......25,000
Hospital insurance premiums ........15,800
Total ...................$242,000
R. Visnak 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 $440,000, and unemployment taxes total $110,000.
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:

Employee R. Lopez K. Kirk Gross Earnings $60,000 27,000 Federal Income Tax Withheld $27,500 11,000