Exercise 10-5

During the month of March, Sheridan Companys employees earned wages of $78,000. Withholdings related to these wages were $5,967 for Social Security (FICA), $9,141 for federal income tax, $3,778 for state income tax, and $488 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $853 for state unemployment tax.

Exercise 10-5 During the month of March, Sheridan Company's employees earned wages of $78,000. Withholdings related to these wages were $5,967 for Social Security (FICA), $9,141 for federal income tax, $3,778 for state income tax, and $488 for union dues. The company incurred no cost related to these earnings for federal unemployment ta:x but incurred $853 for state unemployment tax. Prepare the necessary March 31 journal entry to record salaries and wages expense and salaries and wages payable. Assume that wages earned during March will be paid during April. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Mar. 31 Debit Credit