Ledger Sales Cost of Goods Sold Cash 10,000 Capital 10,000 10,000 0 10,000 0 Sales Tax Payable Wage Expense 0 0 Federal Withholding Trial Balance 0 Credit Debit 10,000 Social Security W/H 0 0 0 0 Cash Sales tax Payable Federal W/H Soc Sec W/H State W/H 401K W/H Capital Sales Wage Expense 0 State Withholding 0 10,000 0 0 0 401K Withholding Total 10,000 10,000 Screenshot 0 Week 14 Lab Journal Entries Post the following journal entries to the T accounts 1 An employee earns a salary of $500 per week before withholding taxes Federal taxes are withheld at 15% ($75) Social Security taxes are withheld at 7% ($35) State taxes are withheld at 5% ($25) 401K (retirement) withholding is 10% ($50) Employee's net check is $315 Journal Entries Cr Dr 500 1 Wage Expense Federal Tax Withholding Social Security Withholding State Tax Withholding 401K Withholding Cash 75 35 25 50 315 2 The company sends out checks to deposit the taxes/retirement withholdings To the IRS, for federal withholding & Social Security ($75 + $35 = $110) To the Massachusetts Dept of Revenue for state taxes ($25) To the 401K plan for retirement savings ($50) Wage Expense recorded was $500 Cash disbursements by company = 315 + 110 +25 +50 = $500 S Cr Dr 75 35 110 2 Federal Tax Withholding Social Security Withholding Cash State Tax Withholding Cash 401K Withholding Cash 25 25 50 50 3 A customer walks into the store and buys $100 worth of goods Assume the sales tax is 6% The customer pays $106 - the purchase price plus the sales tax (you may disegard the COGS side of the entry) Cr Dr 106 3 Cash Sales Sales Tax Payable 100 6 4 Once a month, the company sends all the sales tax collected to the state The company received $106; it pays out $6 to the state; net cash = $100 Cr Dr 6 4 Sales Tax Payable Cash 6 Q + Week 14 Tahun