Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30

1 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.

2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the entry to record the employer's payroll taxes on the payroll to be paid on January 5. Because it is a new fiscal year, all $352,000 in salaries is subject to unemployment compensation taxes.

Entries for Payroll and Payroll Taxes
The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co.:
Salaries: Deductions:
Sales salaries $171,000 Income tax withheld $61,952
Warehouse salaries 94,000 U.S. savings bonds 7,744
Office salaries 87,000 Group insurance 6,336
$352,000
Tax rates assumed:
Social security, 6%
Medicare, 1.5%
State unemployment (employer only), 5.4%
Federal unemployment (employer only), 0.8%
1.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.
2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the entry on December 30 to record the payroll.
3.Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the entry to record the employer's payroll taxes on the payroll to be paid on January 5. Because it is a new fiscal year, all $352,000 in salaries is subject to unemployment compensation taxes.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Franchising An Accounting Auditing And Income Tax Guide

Authors: Ross A. McCallum

2011edition

1460906179, 978-1460906170

More Books

Students also viewed these Accounting questions