PAYROLL ACCOUNTING McLaughlin Manufacturing has the following data available for its March 31, 2009, payroll: Wages earned

Question:

PAYROLL ACCOUNTING McLaughlin Manufacturing has the following data available for its March 31, 2009, payroll:

Wages earned $366,000*

Federal income tax withheld 91,800 State income tax withheld 8,600

* All subject to Social Security and Medicare matching and withholding at 6.2% and 1.45%, respectively.

Federal unemployment tax at 3.2 percent is payable on wages of $7,000, and state unemployment tax at 3.0 percent is payable on the same amount of wages.

Required:

Compute the taxes payable and wages that will be paid to employees. Then prepare the journal entries to record the wages earned and the payroll taxes.

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Related Book For  book-img-for-question

Cornerstones Of Financial Accounting Current Trends Update

ISBN: 9781111527952

1st Edition

Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen

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