Question
Problem 11-05A (Video) For the year ended December 31, 2020, Lily Electrical Repair Company reports the following summary payroll data. Gross earnings: Administrative salaries $212,000
Problem 11-05A (Video)
For the year ended December 31, 2020, Lily Electrical Repair Company reports the following summary payroll data.
Gross earnings: | ||
Administrative salaries | $212,000 | |
Electricians wages | 378,000 | |
Total | $590,000 | |
Deductions: | ||
FICA taxes | $39,648 | |
Federal income taxes withheld | 186,500 | |
State income taxes withheld (3%) | 17,700 | |
United Fund contributions payable | 29,500 | |
Health insurance premiums | 16,500 | |
Total | $289,848 |
Lilys payroll taxes are Social Security tax 6.2%, Medicare tax 1.45%, state unemployment 2.5% (due to a stable employment record), and 0.8% federal unemployment. Gross earnings subject to Social Security taxes of 6.2% total $501,500, and gross earnings subject to unemployment taxes total $149,000. No employee exceeds the $127,200 limit related to FICA taxes.
(a) | Prepare a summary journal entry at December 31 for the full years payroll. | |
(b) | Journalize the adjusting entry at December 31 to record the employers payroll taxes. |
(Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No. | Account Titles and Explanation | Debit | Credit |
(a) | |||
(b) | |||
(c) The W-2 Wage and Tax Statement requires the following dollar data. Complete the required data for the following employees. (Round answers to 0 decimal places, e.g. 5,275.)
Employee | Wages, Tips, Other Compensation | Federal Income Tax Withheld | State Income Tax Withheld | FICA Wages | FICA Tax Withheld | |||||
Maria Sandoval | $56,000 | $27,440 | $ | $ | $ | |||||
Jennifer Mingenback | 24,000 | 9,360 |
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