Payroll Entries

Widmer Company had gross wages of $360,000 during the week ended June 17. The amount of wages subject to social security tax was $360,000, while the amount of wages subject to federal and state unemployment taxes was $30,000. Tax rates are as follows: Social security 6.0% Medicare 1.5% State unemployment 5.4% Federal unemployment 0.8% The total amount withheld from employee wages for federal taxes was $48,000. Required: a. Joumalize the entry to record the payroll for the week of June 17.* b. Journalize the entry to record the payroll tax expense incurred for the week of June 17.* *Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS Widmer Company General Ledger ASSETS REVENUE 410 Sales 110 Cash 111 Accounts Receivable 112 Interest Receivable 8110 Interest Revenue 113 Notes Receivable EXPENSES 5:10 of Goods Sold 115 Inventory 116 Supplies 520 Wages Expense 524 Depreciation Expense-Building 118 Prepaid Insurance 120 Land 526 Delivery Expense 123 Building 526 Repairs Expense 124 Accumulated Depreciation-Building 529 Selling Expenses 125 Office Equipment 531 Rent Expense 126 Acoumulated Depreciation Office Equipment 532 Depreciation Expense-Office Equipment 533 Insurance Expense LIABILITIES 534 Supplies Expense 210 Accounts Payable 585 Payroll Tax Expense 213 Interest Payable 536 Vacation Pay Expense 214 Notes Payable 537 Pension Expense 215 Wages Payable 509 Cash Short and Oven 216 Social Security Tax Payable 589 Product Warranty Expense 217 Medicare Tax Payable 540 Miscellaneous Expense 7.10 Interest Expense 218 Employees Federal Income Tax Payable 219 Employees State Income Tax Payable 221 Retirement Savings Deductions Payable 224 Federal Unemployment Tax Payable 225 State Unemployment Tax Payable 226 Vacation Pay Payable 227 Unfunded Pension Liability 228 Product Warranty Payable EQUITY 310 Common Stook 311 Retained Earnings 312 Dividends a. Journalize the entry to record the payroll for the week of June 17. if required, round answers to two decimal places.* b. Joumalize the entry to record the payroll tax expense incurred for the week of June 17. If required, round answers to two decimal places *Refer to the Chart of Accounts for exact wording of account titles. PAGE 11 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY B 4 5 60 2 8 9 10