Help Alamar Petroleum Company offers its employees the option of contributing retirement funds up to 5% of their salaries, with the contribution being matched by Alamar. The company also pays 80% of medical and life insurance premiums. Deductions relating to these plans and other payroll information for the first biweekly payroll period of February are listed as follows: Wages and walaries Teployee contribution to voluntary retirement plan Medical insurance premium Life insurance premiums Federal income taxes to be withhold Local income taxes to be withheld Payroll taxes Federal unemployment tax rate State unemployment tax rate (after SUTA deduction) Social Security tax rate Medicare tax rate $2,000,000 84,000 42,000 9,000 400,000 53,000 0.60 5.400 6.200 1.459 Required: Prepare the appropriate journal entries to record salaries (xpense and payroll tax expense for the biweekly pay period. Assume that all employees' cumulative wages do not exceed the relevant wage bases for Social Security, FUTA or SUTA, Salaries are not yet paid. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record salaries and wages expense. View transaction list Journal entry worksheet 2 3 Record salaries and wages expense. Note: Enter debits before credits. Event 1 Credit General Journal Debit Salaries and wages expense 12,000,000 Social security taxes payable Medicare taxes payable Withholding taxes payable (federal income tax) Withholding taxes payable (local income tax) Medical insurance payable Life insurance payable Retirement plan payable Salaries and wages payable 124,000 29,000 400,000 53,000 8,400 1,800 84,000 2,000,000 Record entry Clear entry View general Journal View transaction list Journal entry worksheet 1 2 Record payroll tax expense. Note: Enter debits before credits. Event General Journal Debit Credit 2 505,050 Payroll tax expense Social security taxes payable Medicare taxes payable Federal unemployment tax payable State unemployment tax payable 124,000 29,000 12,000 108,000 Record entry Clear entry View general Journal View transaction list Journal entry worksheet 2 Record salaries and wage expense for fringe benefits provided by the employer. Note: Enter debits before credits. Event General Journal Credit 3 Debit 156,760 Salaries and wages expense Medical insurance payable Life insurance payable Retirement plan payable 33,600 7,200 84,000 Record entry Clear entry View general Journal Answer is complete but not entirely correct. No Event Debit Credit 1 2,000,000 General Journal Salaries and wages expense Social security taxes payable Medicare taxes payable Withholding taxes payable (federal income tax) Withholding taxes payable (local income tax) Medical insurance payable Life insurance payable Retirement plan payable Salaries and wages payable 124,000 29,000 400,000 53,000 8,400 1,800 84.000 2,000,000 > 2 2 505,050 Payroll tax expense Social security taxes payablo Medicare taxes payable Federal unemployment tax payable State unemployment tax payable Solo 124,000 29,000 12,000 108,000 3 156,760 Salaries and wages expense Medical Insurance payable Life insurance payable Retirement plan payablo 00 33,600 7.200 84,000
