A company's payroll information for the month of May follows: Administrative salaries $2,000 - Sales salaries 3,500
Question:
A company's payroll information for the month of May follows:
Administrative salaries $2,000 - Sales salaries 3,500 - Shop wages 4,000 - FICA Social Security withheld 300 - FICA Medicare taxes withheld 400
Federal income taxes withheld 1,300 - Medical insurance premiums withheld 415 - Union dues withheld 205
On May 31 the company issued Check No. 335 payable to the Payroll Bank Account for the May payroll. It issued payroll checks to the employees after depositing the check.
1.) Prepare the journal entry to pay the May payroll.
2.) The federal and state unemployment tax rates are 0.8% and 5.4%, respectively, on the first $7,000 paid to each employee.Assume this is the first month of operations and no employees are close to reaching the $7,000 limit.Prepare the journal entry to record the employer's payroll taxes