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 $$625,000$ Federal income tax withheld $$232,260$

Warehouse salaries $240,000$ Social security tax withheld $71,100$

Office salaries $320,000$ Medicare tax withheld $17,775$

$$1,185,000$ Retirement savings $35,500$

Group insurance $53,325$

$$409,960$

Tax rates assumed:

Social security, $6\%$

Medicare, $1\mathrm{.}5\%$

State unemployment $($employer only$),5\mathrm{.}4\%$

Federal unemployment $($employer only$),0\mathrm{.}6\%$

Required:

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

$1$a$.$ 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. $30$

Sales Salaries Expense

fill in the blank $2$

$625,000$

fill in the blank $3$

Warehouse Salaries Expense

fill in the blank $5$

$240,000$

fill in the blank $6$

Office Salaries Expense

fill in the blank $8$

$320,000$

fill in the blank $9$

Employees Federal Income Tax Payable

fill in the blank $11$

fill in the blank $12$

$232,260$

Social Security Tax Payable

fill in the blank $14$

fill in the blank $15$

$71,100$

Medicare Tax Payable

fill in the blank $17$

fill in the blank $18$

$17,775$

Retirement Savings Deductions Payable

fill in the blank $20$

fill in the blank $21$

$35,500$

Group Insurance Payable

fill in the blank $23$

fill in the blank $24$

$53,325$

Salaries Payable

fill in the blank $26$

fill in the blank $27$

$775,040$

$1$b$.$ 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. $30$

Payroll Tax Expense

fill in the blank $29$

fill in the blank $30$

Social Security Tax Payable

fill in the blank $32$

fill in the blank $33$

Medicare Tax Payable

fill in the blank $35$

fill in the blank $36$

State Unemployment Tax Payable

fill in the blank $38$

fill in the blank $39$

$1,620$

Federal Unemployment Tax Payable

fill in the blank $41$

fill in the blank $42$

$180$

$2$a$.$ 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. $30$

Sales Salaries Expense

fill in the blank $44$

$625,000$

fill in the blank $45$

Warehouse Salaries Expense

fill in the blank $47$

$240,000$

fill in the blank $48$

Office Salaries Expense

fill in the blank $50$

$320,000$

fill in the blank $51$

Employees Federal Income Tax Payable

fill in the blank $53$

fill in the blank $54$

$232,260$

Social Security Tax Payable

fill in the blank $56$

fill in the blank $57$

$71,100$

Medicare Tax Payable

fill in the blank $59$

fill in the blank $60$

$17,775$

Retirement Savings Deductions Payable

fill in the blank $62$

fill in the blank $63$

$35,500$

Group Insurance Payable

fill in the blank $65$

fill in the blank $66$

$53,325$

Salaries Payable

fill in the blank $68$

fill in the blank $69$

$775,040$

$2$b$.$ 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 $$1,185,000$ in salaries is subject to unemployment compensation taxes.

Date Account Debit Credit

Jan. $4$

Payroll Tax Expense

fill in the blank $71$

fill in the blank $72$

Social Security Tax Payable

fill in the blank $74$

fill in the blank $75$

Medicare Tax Payable

fill in the blank $77$

fill in the blank $78$

State Unemployment Tax Payable

fill in the blank $80$

fill in the blank $81$

$63,990$

Federal Unemployment Tax Payable

fill in the blank $83$

fill in the blank $84$

$7,110$