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Entries for payroll and payroll taxes Instructions Chart of Accounts Journal Instructions The following information about the payroll for the week ended December 30 was

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Entries for payroll and payroll taxes Instructions Chart of Accounts Journal Instructions The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co. Salaries: Deductions: Sales salaries $330,000 Income tax withheld $116,600 Warehouse salaries 180,000 U.S. savings bonds 14,454 Office salaries 147,000 Group insurance 11,826 $657,000 Tax rates assumed: Social Security 6% State unemployment (employer only) 5.4% Medicare 1.5% Federal unemployment (employer only) 0.8% Required: 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): a December 30, to record the payroll b. 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. $31,000 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 following entries (refer to the Chart of Accounts for exact wording of account titles) a. On page 11 of the journal: December 30, to record the payroll b. On page 12 of the journal: January 5, to record the employer's payroll taxes on the payroll to be paid on January 5. Since it is a new fiscal year, all $657,000 in salaries is subject to unemployment compensation taxes CHART OF ACCOUNTS Boltz Co. General Ledger REVENUE ASSETS 110 Cash 410 Sales 610 Interest Revenue EXPENSES 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 510 Cost of Goods Sold 520 Sales Salaries Expense 521 Warehouse Salaries Expense 522 Office Salaries Expense 524 Depreciation Expense-Building 525 Delivery Expense Instructions Chart of Accounts Journal Instructions Chart of Accounts 124 Accumulated Depreciation-Building 125 Office Equipment 126 Accumulated Depreciation Office Equipment 525 Delivery Expense 526 Repairs Expense 529 Selling Expenses 531 Rent Expense 532 Depreciation Expense-Office Equipment LIABILITIES 533 Insurance Expense 210 Accounts Payable 213 Interest Payable 214 Notes Payable 215 Salaries Payable 216 Social Security Tax Payable 217 Medicare Tax Payable 218 Employees Income Tax Payable 220 Group Insurance Payable 221 U.S. Saving Bond Deductions Payable 222 Union Dues Payable 534 Supplies Expense 535 Payroll Tax Expense 536 Vacation Pay Expense 537 Pension Expense 538 Cash Short and Over 540 Miscellaneous Expense 710 Interest Expense Instructions Chart of Accounts Journal 710 Interest Expense Instructions Chart of Accounts 220 Group Insurance Payable 221 U.S. Saving Bond Deductions Payable 222 Union Dues Payable 223 Retirement Savings Deductions Payable 224 Federal Unemployment Tax Payable 225 State Unemployment Tax Payable 226 Vacation Pay Payable 227 Unfunded Pension Liability EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends

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