Exercise 13-7 (Part Level Submission)

Pronghorn Hardware Companys payroll for November 2017 is summarized below.

					Amount Subject to Payroll Taxes
						Unemployment Tax
Payroll		Wages Due		FICA		Federal		State
Factory		$122,600		$122,600		$41,300		$41,300
Sales		33,800		33,800		4,200		4,200
Administrative		39,100		39,100
Total		$195,500		$195,500		$45,500		$45,500

At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employees wages to $118,500 and 1.45% in excess of $118,500. Of the $195,500 wages subject to FICA tax, $20,300 of the sales wages is in excess of $118,500. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $17,300 for factory, $6,700 for sales, and $5,800 for administrative.

Part B

Prepare the journal entries to record the factory, sales, and administrative payrolls including the employers payroll taxes.

(b) Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer's payroll taxes. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,125.) Debit Credit Account Titles and Explanation Factory Payroll: Salaries and Wages Expense 122600 Cash Withholding Taxes Payable FICA Taxes Payable (To record salaries and wages expense.) Payroll Tax Expense FICA Taxes Payable FUTA Taxes Payable SUTA Taxes Payable (To record payroll tax expense.) Sales Payroll: (b) Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer's payroll taxes. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,125.) Debit Credit Account Titles and Explanation Factory Payroll: Salaries and Wages Expense 122600 Cash Withholding Taxes Payable FICA Taxes Payable (To record salaries and wages expense.) Payroll Tax Expense FICA Taxes Payable FUTA Taxes Payable SUTA Taxes Payable (To record payroll tax expense.) Sales Payroll