Journal entries for payroll. During the current period, suppose that McGee Associates' office employees earned wages of
Question:
Journal entries for payroll. During the current period, suppose that McGee Associates'
office employees earned wages of $700,000. McGee withheld 18 percent of this amount for payments for federal income taxes, 5 percent for state income taxes, and 6 percent for Social Security taxes. McGee must pay 6 percent of gross wages for Social Security taxes, 2 percent for state FUTA taxes, and 1 percent for federal FUTA taxes. McGee has promised to contribute 4 percent of gross wages to a profit-sharing fund, which workers will share as they retire. Employees earned vacation pay estimated to be $14,000; estimated fringe benefits are 20 percent of that amount.
a. Prepare journal entries for these wage-related items.
b. What is total wage and salary expense?
(Appendix)
Step by Step Answer:
Financial Accounting An Introduction To Concepts Methods And Uses
ISBN: 9780030259623
9th Edition
Authors: Clyde P. Stickney, Roman L. Weil