Question
According to a summary of the payroll of Scotland Company, salaries for the period were $500,000. Federal income tax withheld was $98,000. Also, $15,000 was
According to a summary of the payroll of Scotland Company, salaries for the period were $500,000. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (4.2%) and federal (0.8%) unemployment taxes. All earnings are subject to social security tax of 6.0% and Medicare tax of 1.5%.
Required:
1. Journalize the entry to record the accrual of payroll. All employee earnings are subject to Medicare tax. If required, round your answers to the nearest cent. If an amount box does not require an entry, leave it blank or enter "0"
_____________ ______ ______
_____________ ______ ______
_____________ ______ ______
_____________ ______ ______
_____________ ______ ______
2. Journalize the entry to record the accrual of payroll taxes. All employee earnings are subject to Medicare tax. If required, round your answers to the nearest cent. If an amount box does not require an entry, leave it blank or enter "0".
_____________ ______ ______
_____________ ______ ______
_____________ ______ ______
_____________ ______ ______
_____________ ______ ______
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started