Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help figuring out the ss payable, medicare, savings plan, and cash. Electronics Service Co. pays salaries monthly on the last day of the

I need help figuring out the ss payable, medicare, savings plan, and cash. image text in transcribed
image text in transcribed
Electronics Service Co. pays salaries monthly on the last day of the month. The following information is available from Electronics for the month ended December 31, Year 1: Administrative salaries Sales salaries office salaries $80,000 67.000 36,000 Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries and the Medicare tax rate is 1.5 percent on all salaries. Duke reached the $110,000 amount in September. His salary in December amounted to $15,000 and is included in the $80,000. No one else will reach the $110,000 amount for the year. None of the employee salaries are subject to unemployment tax in December Other amounts withheld from salaries in December were as follows: Federal income tax State income tax Employee savings plan $20,000 6,200 2,600 Required a. Prepare the journal entry to record the payment of payroll on December 31, Year 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date Credit General Journal Administrative salaries expense 12/31 Debit 80,000 67.000 Sales salaris Axen Federal income tax State income tax Employee savings plan $20.000 6.200 2,600 Required a. Prepare the journal entry to record the payment of payroll on December 31, Year 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Credit Date 2/31 1 1 1 Debit 80,000 67,000 36,000 General Journal Administrative salaries expense Sales salaries expense Office salaries expense Employee federal income tax payable Employee state income tax payable FICA tax - SS payable FICA tax - Medicare payable Employee savings plan Cash 20,000 6,200

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

DOD Financial Management The Army Faces Significant Challenges In Achieving Audit Readiness For Its Military Pay

Authors: Government Accountability Office

1st Edition

1492310921, 978-1492310921

More Books

Students also viewed these Accounting questions

Question

If P0 = 14 , P1 = 14 , P2 = 12 , then determine 0.

Answered: 1 week ago