Entries for Payroll and Payroll Taxes

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

Salaries:				Deductions:
	Sales salaries	$287,000			Federal income tax withheld	$104,016
	Warehouse salaries	158,000			Social security tax withheld	35,460
	Office salaries	146,000			Medicare tax withheld	8,865
		$591,000			Retirement savings	13,002
					Group insurance	10,638
						$171,981

Tax rates assumed:
	Social security, 6%
	Medicare, 1.5%
	State unemployment (employer only), 5.4%
	Federal unemployment (employer only), 0.6%

Required:

If an amount box does not require an entry, leave it blank.

1a. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on December 30, to record the payroll.

Date	Account	Debit	Credit
Dec. 30	CashEmployees Income Tax ExpenseMedicare Tax PayableSales Salaries ExpenseSales Salaries Payable	fill in the blank 2	fill in the blank 3
	CashMedicare Tax PayableSocial Security Tax PayableWarehouse Salaries ExpenseWarehouse Salaries Payable	fill in the blank 5	fill in the blank 6
	CashRetirement Savings Deductions PayableEmployees Income Tax ExpenseOffice Salaries ExpenseOffice Salaries Payable	fill in the blank 8	fill in the blank 9
	CashEmployees Income Tax ExpenseEmployees Federal Income Tax PayableOffice Salaries ExpenseWarehouse Salaries Expense	fill in the blank 11	fill in the blank 12
	CashSales Salaries ExpenseSocial Security Tax ExpenseSocial Security Tax PayableWarehouse Salaries Expense	fill in the blank 14	fill in the blank 15
	CashMedicare Tax ExpenseMedicare Tax PayableOffice Salaries ExpenseSales Salaries Expense	fill in the blank 17	fill in the blank 18
	Bond Deductions ExpenseRetirement Savings Deductions PayableCashOffice Salaries ExpenseWarehouse Salaries Expense	fill in the blank 20	fill in the blank 21
	Accounts PayableGroup Insurance ExpenseGroup Insurance PayableOffice Salaries ExpenseSales Salaries Expense	fill in the blank 23	fill in the blank 24
	Accounts ReceivableOffice Salaries ExpenseSalaries PayableSales Salaries ExpenseWarehouse Salaries Expense	fill in the blank 26	fill in the blank 27

1b. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the entry on 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, $30,000 is subject to unemployment compensation taxes.

Date	Account	Debit	Credit
Dec. 30	Federal Unemployment Tax PayableMedicare Tax PayablePayroll Tax ExpenseSalaries ExpenseSocial Security Tax Payable	fill in the blank 29	fill in the blank 30
	Accounts PayableFederal Unemployment Tax ExpensePayroll Tax ExpensePayroll Tax PayableSocial Security Tax Payable	fill in the blank 32	fill in the blank 33
	CashMedicare Tax ExpenseMedicare Tax PayablePayroll Tax ExpensePayroll Tax Payable	fill in the blank 35	fill in the blank 36
	CashOffice Salaries ExpenseSalaries PayableState Unemployment Tax ExpenseState Unemployment Tax Payable	fill in the blank 38	fill in the blank 39
	CashFederal Unemployment Tax ExpenseFederal Unemployment Tax PayableSalaries PayableWarehouse Salaries Expense	fill in the blank 41	fill in the blank 42

2a. Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year, journalize the entry on December 30, to record the payroll.

Date	Account	Debit	Credit
Dec. 30	CashEmployees Income Tax ExpenseMedicare Tax PayableSales Salaries ExpenseSales Salaries Payable	fill in the blank 44	fill in the blank 45
	CashMedicare Tax PayableSocial Security Tax PayableWarehouse Salaries ExpenseWarehouse Salaries Payable	fill in the blank 47	fill in the blank 48
	CashRetirement Savings Deductions PayableEmployees Income Tax ExpenseOffice Salaries ExpenseOffice Salaries Payable	fill in the blank 50	fill in the blank 51
	CashEmployees Income Tax ExpenseEmployees Federal Income Tax PayableOffice Salaries ExpenseWarehouse Salaries Expense	fill in the blank 53	fill in the blank 54
	CashSales Salaries ExpenseSocial Security Tax ExpenseSocial Security Tax PayableWarehouse Salaries Expense	fill in the blank 56	fill in the blank 57
	CashMedicare Tax ExpenseMedicare Tax PayableOffice Salaries ExpenseSales Salaries Expense	fill in the blank 59	fill in the blank 60
	Bond Deductions ExpenseRetirement Savings Deductions PayableCashOffice Salaries ExpenseWarehouse Salaries Expense	fill in the blank 62	fill in the blank 63
	Accounts PayableGroup Insurance ExpenseGroup Insurance PayableOffice Salaries ExpenseSales Salaries Expense	fill in the blank 65	fill in the blank 66
	Accounts ReceivableOffice Salaries ExpenseSalaries PayableSales Salaries ExpenseWarehouse Salaries Expense	fill in the blank 68	fill in the blank 69

2b. Assuming that the payroll for the last week of the year is to be paid on January 4 of the following fiscal year, journalize the entry to record the employer's payroll taxes on the payroll to be paid on January 4. Because it is a new fiscal year, all $591,000 in salaries is subject to unemployment compensation taxes.

Date	Account	Debit	Credit
Jan. 4	Federal Unemployment Tax PayableMedicare Tax PayablePayroll Tax ExpenseSalaries ExpenseSocial Security Tax Payable	fill in the blank 71	fill in the blank 72
	Accounts PayableFederal Unemployment Tax ExpensePayroll Tax ExpensePayroll Tax PayableSocial Security Tax Payable	fill in the blank 74	fill in the blank 75
	CashMedicare Tax ExpenseMedicare Tax PayablePayroll Tax ExpensePayroll Tax Payable	fill in the blank 77	fill in the blank 78
	CashOffice Salaries ExpenseSalaries PayableState Unemployment Tax ExpenseState Unemployment Tax Payable	fill in the blank 80	fill in the blank 81
	CashFederal Unemployment Tax ExpenseFederal Unemployment Tax PayableSalaries PayableWarehouse Salaries Expense	fill in the blank 83	fill in the blank 84