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