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According to a summary of the payroll of Scotland Company, total salaries were S500,000. Assume that social security taxes are payable at a 6% rate
According to a summary of the payroll of Scotland Company, total salaries were S500,000. Assume that social security taxes are payable at a 6% rate and Medicare taxes are payable at a 1.5% rate with no maximum earnings. Federal income tax withheld was S98.000. Also, $15,000 was subject to state (4.2%) and federal (0.8%) unemployment taxes. The journal entry to record accrued salaries would include a debit to Salaries Payable of S365,250 credit to Salaries Payable of S364,500 debit to Salaries Expense of $364,500 credit to Salaries Expense of $365,250
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