Question
Exercise 8-4 During the month of March, Pharoah Company's employees earned wages of $66,000. Withholdings related to these wages were $5,049for Social Security (FICA), $7,734for
Exercise 8-4
During the month of March, Pharoah Company's employees earned wages of $66,000. Withholdings related to these wages were $5,049for Social Security (FICA), $7,734for federal income tax, $3,197for state income tax, and $413for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $722for state unemployment tax.
(a)Prepare tabular summary to record salaries and wages expense and salaries and wages payable on March 31. Assume that wages earned during March will be paid during April.(b) Prepare tabular summary to record the company's payroll tax expense.
(If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)
Assets
=Liabilities
+Stockholders' Equity
Retained EarningsCash=Salaries & Wages Pay.+Fed. Inc. Taxes Pay.+FICA Taxes Pay.+St. Inc. Taxes Pay.+Union Dues Pay.+State Unemp. Taxes Pay.+Common Stock+Revenue
-Expense-Dividend(a)Mar. 31$
$
$
$
$
$
$
$
$
$
$
Salaries & wages expense
Payroll tax expense
(b)Mar. 31
Payroll tax expense
Salaries & wages expense
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