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For the year ended December 31, Lily Electrical Repair Company reports the following summary payroll data. Gross earnings: Administrative salaries $212,000 Electricians' wages 378,000
For the year ended December 31, Lily Electrical Repair Company reports the following summary payroll data. Gross earnings: Administrative salaries $212,000 Electricians' wages 378,000 Total $590,000 Deductions: FICA taxes $39,648 Federal income taxes withheld 186,500 State income taxes withheld (3%) 17,700 United Fund contributions payable 29,500 Health insurance premiums 16,500 Total $289,848 Lily Company's payroll taxes are Social Security tax 6.2% and Medicare tax 1.45%. Gross earnings subject to Social Security taxes 6.2% total $501,500. (a) Prepare a summary journal entry at December 31 for the full year's payroll. (Credit account titles are automatically indented wher amount is entered. Do not indent manually.)
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