Assignment:

The following information about the payroll for the week ended December 30 was obtained from the records of KLM Co.:

Salaries:

Sales Salaries $350,000

Warehouse Salaries 180,000

Office Salaries 145,000

____________

$675,000

Deductions:

Income Tax Withheld $118,800

Social Security Tax Withheld 40,500

Medicare Tax Withheld 10.125

US Savings Bonds 14,850

Group Insurance 12.150

______________

$196,425

Tax Rates Assumed:

Social Security, 6%

Medicare 1.5%

State Unemployment (SUTA) 5.4%

Federal Unemployment (FUTA) 0.6%

Required:

Prepare the journal entries to

1. Record the December 30 payroll
2. Record the employers payroll taxes. Assume that $35,000 is subject to unemployment compensation taxes