Question
Payroll Entries The payroll register for D. Salah Company for the week ended May 18 indicated the following: Salaries $615,000 Federal income tax withheld 165,000
Payroll Entries
The payroll register for D. Salah Company for the week ended May 18 indicated the following:
Salaries | $615,000 |
Federal income tax withheld | 165,000 |
The salaries were all subject to the 6.0% social security tax and the 1.5% Medicare tax. In addition, state and federal unemployment taxes were calculated at the rate of 5.4% and 0.8%, respectively, on $45,000 of salaries.
For a compound transaction, if an amount box does not require an entry, leave it blank.
a. Journalize the entry to record the payroll for the week of May 18.
May 18 | Salaries Expense | ||
Social Security Tax Payable | |||
Medicare Tax Payable | |||
Employees Federal Income Tax Payable | |||
Salaries Payable |
Feedback
Gross pay is the amount that employees have earned before taxes and deductions. A portion of employees' earnings are owed for such items as state and federal taxes. Net pay is also known as take-home pay.
b. Journalize the entry to record the payroll tax expense incurred for the week of May 18.
May 18 | Payroll Tax Expense | ||
Social Security Tax Payable | |||
Medicare Tax Payable | |||
State Unemployment Tax Payable | |||
Federal Unemployment Tax Payable |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started