Instructions The following information about the payroll for the week ended December 30 was obtained from the records of Boltz Co.: Salaries: Deductions: Sales salaries $325,000 Income tax withheld $116,200 Warehouse salaries 192,000 U.S. savings bonds 14,388 Office salaries 137,000 Group insurance 11,772 $654,000 Tax rates assumed: Social security 6% State unemployment (employer only) 5.4% Medicare 1.5% Federal unemployment (employer only) 0.8% Required: 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): a. December 30, to record the payroll. Instructions Tax rates assumed: Social security 6% State unemployment (employer only) 5.4% Medicare 1.5% Federal unemployment (employer only) 0.8% Required: 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): a. December 30, to record the payroll. b. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the $45,000 is subject to unemployment compensation taxes. 2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): a. On page 11 of the journal: December 30, to record the payroll. b. On page 12 of the journal: January 5, to record the employer's payroll taxes on the payroll to be paid on January 5. Since it is a new fiscal year, all $654,000 in salaries is subject to unemployment compensation taxes. Chart of Accounts X CHART OF ACCOUNTS Boltz Co. General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Accounts Receivable 610 Interest Revenue 112 Interest Receivable 113 Notes Receivable EXPENSES 115 Inventory 510 Cost of Goods Sold 116 Supplies 520 Sales Salaries Expense 118 Prepaid Insurance 521 Warehouse Salaries Expense 120 Land 522 Office Salaries Expense 123 Building 524 Depreciation Expense-Building 124 Accumulated Depreciation-Building 525 Delivery Expense 125 Office Equipment 526 Repairs Expense 126 Accumulated Depreciation Office Equipment 529 Selling Expenses Chart of Accounts 531 Rent Expense LIABILITIES 532 Depreciation Expense-Office Equipment 210 Accounts Payable 533 Insurance Expense 213 Interest Payable 534 Supplies Expense 214 Notes Payable 535 Payroll Tax Expense 215 Salaries Payable 536 Vacation Pay Expense 537 Pension Expense 216 Social Security Tax Payable 217 Medicare Tax Payable 538 Cash Short and Over 218 Employees Income Tax Payable 540 Miscellaneous Expense 220 Group Insurance Payable 710 Interest Expense 221 U.S. Saving Bond Deductions Payable 222 Union Dues Payable 223 Retirement Savings Deductions Payable 224 Federal Unemployment Tax Payable 225 State Unemployment Tax Payable 226 Vacation Pay Payable 227 Unfunded Pension Liability Journal Scroll down to access additional pages of the journal. 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): a. December 30, to record the payroll. b. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of i year, $45,000 is subject to unemployment compensation taxes. JOURNAL DATE DESCRIPTION POST. REF. DEBIT Acco ASSETS CREDIT 1 2 3 Journal JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT ACCO ASSETS 1 2 3 4 5 6 7 8 9 10 11 12 13 Journal 2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): a. On page 11 of the journal: December 30, to record the payroll. b. On page 12 of the journal: January 5, to record the employer's payroll taxes on the payroll to be paid on January 5. Since it is a new fiscal year, all $654,000 in salaries is subject to unemployment compensation taxes. JOURNAL ACCOLINTIN ASSETS LIAB DATE DESCRIPTION POST. REF. DEBIT CREDIT Journal 6 7 8 9 JOURNAL Acco ASSETS DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 2 3 4 5
